Funding Update


 

TIDMTSG 
 
RNS Number : 0046T 
Trans-Siberian Gold PLC 
29 May 2009 
 

 
 
Trans-Siberian Gold plc 
 
 
Asacha project funding update 
 
 
LONDON: 29 May 2009 - Trans-Siberian Gold plc ("TSG" or "the Company") (TSG.L) 
reported on 7 May 2009 that it required additional funding of US$25 million to 
bring the Asacha mine into production. It also reported that the Company's major 
shareholder UFG Asset Management had agreed in principle to contribute part of 
this funding requirement, provided that the Company secured the balance from 
other sources, and to consider the provision of bridge finance while 
negotiations continued with other potential sources of funding. 
 
 
UFG has now agreed to provide the Company with bridge finance of up to US$3 
million on commercial terms. 50% of the loan is repayable on the earlier of the 
first anniversary of the commencement of gold production at Asacha and 30 
September 2011, the balance on the earlier of the second anniversary of first 
gold production and 30 September 2012. 
 
 
If the Company raises equity during the term of the loan, UFG may convert any 
part of the outstanding loan into TSG shares at the same time and price per 
share as that equity raising. UFG also has an option, subject to the requisite 
approval of TSG's shareholders, to convert any part of the outstanding loan into 
TSG shares at a price equivalent to the volume weighted average price of TSG's 
shares for the period of 60 business days prior to notice of such conversion. 
 
 
Since the UFG loan is a related party transaction the Company's Board (except 
for Florian Fenner, Dmitry Khilov and Charles Ryan who are connected to UFG) 
consider, having consulted with TSG's Nominated Adviser Seymour Pierce Limited, 
that the terms of the UFG loan are fair and reasonable insofar as the 
shareholders of TSG are concerned. On the basis of this advice the Board has 
approved the UFG loan. 
 
 
The Company has also agreed, subject to obtaining the necessary shareholder 
approvals, to issue warrants to subscribe for additional TSG shares to UFG on 
terms to be agreed and considered as fair and reasonable by the Company's Board 
(excluding those directors connected to UFG) after consultation with TSG's 
Nominated Adviser. 
 
 
A further announcement in respect of the continuing negotiations with other 
potential sources of finance will be made in due course. 
 
 
Ends 
Contacts: 
 
 
TSG 
Simon Olsen  +44 (0) 1480 811871 
Seymour Pierce 
John Depasquale  +44 (0) 20 7107 8000 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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