Since its IPO in 1999, ROC has had in place a US$ syndicated bank loan with security over ROC's UK assets in favor of the lenders. In accordance with the terms of the loan facility the outstanding balance of the loan of US$13,570,286 was repaid on July 30, 2004 from existing cash reserves. The security over ROC's UK assets has been released.
Following repayment of the loan. ROC has no outstanding debt. As at June 30, 2004 ROC held net cash of $101.4 million.
In order to implement its planned development and exploration program, ROC plans to raise additional funding to supplement its existing cash reserves and expected cash flow from producing assets. In this context, ROC is in discussions with various parties to access additional funds through a new corporate loan facility for up to US$50 million. ROC has also been in discussions with International Finance Corporation in relation to a mezzanine finance facility. Arrangements in relation to this additional funding are planned to be completed by year-end 2004.
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