Vane Minerals restructures, repays £1.5 million of convertible notes

Notes were held by investors Geiger Counter, City Natural Resources

By Devika Patel

Knoxville, Tenn., May 23 - Vane Minerals plc said has reached an agreement with the holders of its convertible loan notes to restructure the notes.

The two convertible loan notes are for £1 million and £500,000. The £1 million notes tranche was issued to Geiger Counter Ltd. in May 2007 and was due to be repaid at the end of May. The second £500,000 loan was issued to City Natural Resources High Yield Trust plc in September 2007 and was due to be repaid at end of September.

Vane has agreed to repay the £500,000 City Natural note on May 31 out of existing cash resources. The company will carry forward a loan note of £1 million, which will be issued to Geiger Counter.

The new 8% loan note matures on May 31, 2017 and is convertible into 80 million ordinary shares at 1.25p per share, which is a 34% premium to the mid-market price of 0.935p at the close of business on May 22. The new note may be repaid early.

"I am delighted to have reached this agreement with the loan note holders," chief executive David Newton said in a press release. "The maximum dilution to existing shareholders would equate to only 15.3% of the enlarged share capital of the company and the agreement allows the company to continue to devote its current cash resources to the development of its highly promising copper and uranium exploration assets."

Based in Mayfair, England, Vane Minerals evaluates, acquires, develops and operates mineral exploration targets, principally gold, silver and uranium targets.

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