At a special meeting of shareholders of Namibian Minerals Corporation held on Jan. 17, 2002, shareholders of the company passed resolutions approving:
restructuring transactions and the issuance of shares pursuant to such transactions, which include a rescheduling agreement with the company’s senior lenders (concluded in December, 2001), rescheduling repayment of a total $7,798,000 (U.S.) face value of convertible debentures issued in March, 2001 (the tranche 1), and April, 2001 (the tranche 2) (together the convertible debentures), and of an earlier $2.6-million (U.S.) loan made to the company by LL Mining Corporation BV and the provision of a $10-million (U.S.) loan facility to the company by LL Mining; and
a share compensation plan to compensate certain employees and a consultant to the company for agreeing to take a reduction in remuneration between August, 2001, and March, 2002, in support of the company’s recovery program.
The company is in the process of finalizing the terms of the rescheduling of repayment of the convertible debentures and the $2.6-million (U.S.) loan made to the company by LL Mining, and the $10-million (U.S.) loan to be made to the company by LL Mining to replace the $3-million (U.S.) bridging facility already made available to the company by LL Mining. It is anticipated that these transactions will be concluded shortly.
The chairman, Arye Barboy, said: “I am delighted to have received strong support from the shareholders. The approval of the company’s rescheduling transactions places the company in a position to conclude the commercial objectives of its recovery program and to commence moving toward achieving its full potential. We are expecting to finalize the repairs of the NamSSol I before the end of the second quarter of this year, which will result in increased operational mining capacity, which is significantly higher than the company has previously had.”
