8 January, 2015
The Manager, Company Announcements Office
Australian Securities Exchange
Exchange Centre
4th Floor, 20 Bridge Street
Sydney NSW 2000
Dear Sir/Madam,
The Contract included provision of a US$80m funding component by MCCO.
During 2014, MCCO requested time to restructure its internal funding arrangements but despite extensive negotiations and cooperation from Amex, MCCO has not been able to finalise that restructure.
MCCO has failed to proceed with the works as required by the Contract during this time and is in default of the Contract in a way which Amex considers demonstrates MCCO's intention not to meet its contractual commitments. Amex considers it preferable to terminate the contract with MCCO and pursue alternative contractual arrangements for the design and construction of the project.
The Advance Payment of US$20m made by Amex on 6 January 2014 is required to be repaid on termination of the Contract.
January, with interest on the outstanding principal to be paid at a rate of 25% per annum on maturity.
Unsecured Loan Facility: The Company has negotiated an unsecured loan to the amount of US$5m at
a rate of 25% per annum paid in advance for a period of 3 months. The funds raised will be used to repay
US$5m of the short term loan.
The Company is finalising additional funds for working capital and repayment of interest. Details will be announced on completion.
Following termination of the MCCO FIDIC Contract the Company will take steps to appoint an alternate contractor and arrange alternative funding to expedite construction on the ground in Fiji.
Yours faithfully,
Matthew Collard
Managing Director
AMEX RESOURCES LIMITED ABN 55 089 826 23722 Emerald Terrace, West Perth, WA 6005
Telephone (08) 9480 0455 Facsimile (08) 9321 0320 www.amex.net.au
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