REG - URU Metals Limited - Loan Facility

URU MetalsAnnouncement

22/12/2021 17:15

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RNS Number : 5473W  URU Metals Limited  22 December 2021

22 December 2021

URU  Metals Limited

("URU" or "the Company")

Loan Facility

 

URU Metals Limited (AIM: URU) has today entered into an agreement with John
Zorbas ("Loan Agreement"), the CEO of URU, for the provision of a loan of CAD
950,000 ("Loan"). No interest is due from the Company in connection with the
Loan, it is unsecured and no fee is payable to Mr Zorbas. The loan is
repayable upon 30 days notice.

John Zorbas entered into a non-binding agreement with URU on 16 June 2021 and
advanced the Company  CAD 950,000 in cash, to be held in escrow or as
restricted cash ("Restricted Cash") on 17 June 2021, pending formal agreements
being entered into between Mr Zorbas and URU. The Restricted Cash was provided
as a contingency fund to be used by URU in the event that the disposal of the
Company's interest in the Zebediela nickel project was not completed or not
completed within the timescale originally anticipated (see the RNS
announcement of 3 March 2021 for details relating to the disposal of the
Zebediela nickel project).

The provision of the Restricted Cash was a transaction with a related party
and was subject to AIM Rule 13 of the AIM Rules for Companies.  The Company
did not comply with the requirements of AIM Rule 13 in respect of the
provision of Restricted Cash at the time that it was provided. The Loan
Agreement is the formal binding agreement intended to replace the non-binding
agreement of 16 June 2021.

The Loan will be used for general working capital purposes.

The Loan agreement constitutes a related party transaction pursuant to Rule 13
of the AIM Rules for Companies. Accordingly, the board of URU, with the
exception of John Zorbas, having consulted with SP Angel, the Company's
nominated adviser, consider that the terms of the Loan are fair and reasonable
insofar as its shareholders are concerned.

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014, incorporated into UK law by the European Union (Withdrawal) Act 2018
until the release of this announcement.

 

For further information, please contact:

URU Metals Limited

John Zorbas

(Chief Executive Officer)

 +1 416 504 3978

SP Angel Corporate Finance LLP

(Nominated Adviser and Broker)

Ewan Leggat / Charlie Bouverat

+ 44 (0) 203 470 0470

 

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