Mongolian Mining Corporation (00975) said it has
been advised that controlling shareholder MCS Mining Group Limited has agreed to charge
about 336.7 million shares, representing about 9% of the issued shares, in favour of
Standard Bank Plc.
The charge was entered into as part of the security to secure loan facilities granted to
MCS Holding LLC, MCS International LLC and MCS Property LLC and further shares held by MCS
Mining Group Limited may be, from time to time, charged under the new share charge in
order to ensure that MCS Holding LLC, MCS International LLC and MCS Property LLC comply
with their obligations under the new facilities agreement.
The new share charge is expected to be discharged and released upon full repayment of
the loan(s) granted under the new facilities agreement.
Mongolian Mining has also been advised that the security created pursuant to the share
charge will be released on the date of first drawdown under the new facilities agreement
on which date all amounts outstanding under the facilities agreement will be repaid in
full. (HL)