Initial partial draw down of US$5 million convertible loan facility <Origin Href="QuoteRef">SRB.L</Origin>

Serabi GoldAnnouncement

06/01/2016 07:10

For immediate release 
 6 January 2016 
 Serabi Gold Plc 
 ("Serabi" or the "Company") 
 Initial partial draw down of US$5 million convertible loan facility 
 
 Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and
development company, announces that further to the news release issued on 31
December 2015,  the Company has made an initial draw down of US$2 million of
the interim unsecured short term working capital convertible loan facility of
US$5 million (" the Loan ") that has been provided by Fratelli Investments
Limited (" Fratelli Investments "), the Company's major shareholder. 
 
 Interest on the Loan is chargeable at the rate of 12% per annum.  The first
US$2 million of the Loan is convertible at the election of Fratelli
Investments into new Serabi Ordinary Shares at an exercise price of 3.6 pence
per new Serabi Ordinary Share at any time. The remaining amount of the Loan,
if drawdown, may be repaid by the Company at its option at any time on or
before 30 June 2016.  Thereafter, Fratelli Investments will have the right to
convert all or part of the remaining amount of the Loan into new Serabi
Ordinary Shares at an exercise price of 3.6 pence per new Serabi Ordinary
Share at any time.  Unless otherwise repaid or converted the Loan is for a
period expiring on 31 January 2017. 
 
 Enquiries: 
 
  Serabi Gold plc                                                           
  Michael Hodgson                               Tel: +44 (0)20 7246 6830     
  Chief Executive                               Mobile: +44 (0)7799 473621   
                                                                           
  Clive Line                                    Tel: +44 (0)20 7246 6830     
  Finance Director                              Mobile: +44 (0)7710 151692   
                                                                           
  Email: contact@serabigold.com                                             
  Website:  www.serabigold.com                                             
                                                                           
  Beaumont Cornish Limited Nominated Adviser                                
  Roland Cornish                                Tel: +44 (0)20 7628 3396     
  Michael Cornish                               Tel: +44 (0)20 7628 3396     
                                                                           
  Peel Hunt LLP UK Broker                                                   
  Matthew Armitt                                Tel: +44 (0)20 7418 9000     
  Ross Allister                                 Tel: +44 (0)20 7418 9000     
                                                                           
  Blytheweigh Public Relations                                              
  Tim Blythe                                    Tel: +44 (0)20 7138 3204     
  Camilla Horsfall                              Tel: +44 (0)20 7138 3224     
 Copies of this release are available from the Company's website at
www.serabigold.com . 
 
 Neither the Toronto Stock Exchange, nor any other securities regulatory
authority, has approved or disapproved of the contents of this news release. 
 
 Qualified Persons Statement 
 
 The scientific and technical information contained within this announcement
has been reviewed and approved by Michael Hodgson, CEO of the Company. Mr
Hodgson is an Economic Geologist by training with over 25 years' experience in
the mining industry. He holds a BSc (Hons) Geology, University of London, a
MSc Mining Geology, University of Leicester and is a Fellow of the Institute
of Materials, Minerals and Mining and a Chartered Engineer of the Engineering
Council of UK, recognizing him as both a Qualified Person for the purposes of
Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and
Oil & Gas Companies dated June 2009. 
 
 Forward Looking Statements 
 
 This press release contains forward-looking statements. All statements, other
than of historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements.
Forward-looking statements are often identifiable by the use of words such as
"anticipate", "believe", "plan", may", "could", "would", "might" or "will",
"estimates", "expect", "intend", "budget", "scheduled", "forecasts" and
similar expressions or variations (including negative variations) of such
words and phrases. Forward-looking statements are subject to a number of risks
and uncertainties, many of differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results or events
to differ materially from current expectations include, among other things,
without limitation, failure to establish estimated mineral resources, the
possibility that future exploration results will not be consistent with the
Company's expectations, the price of gold or copper and other risks identified
in the Company's most recent annual information form filed with the Canadian
securities regulatory authorities on SEDAR.com. Any forward-looking statement
speaks only as of the date on which it is made and, except as may be required
by applicable securities laws, the Company disclaims any intent or obligation
to update any forward-looking statement. 
 
 ENDS 
 

 This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients. 
 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: Serabi Gold plc via Globenewswire 
 HUG#1976843