22 December 2021
URU Metals Limited
(“URU” or “the Company”)
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
(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