15 October 2012
The Manager
Company Announcements Office
Australian Securities Exchange
20 Bridge Street
SYDNEY NSW 2000
On 1 October 2012 UXA Resources Limited's (ASX:UXA)
("Company") shares were suspended from official quotation on
ASX as a result of UXA not lodging, with ASX by the due date,
it's annual audited financial accounts for the financial year
ending 30 June 2012. Under the ASX Listing Rules UXA's shares
will remain suspended until such time as the financial
accounts are lodged with ASX.
The remaining issues to be resolved before the finalisation
of the full year accounts relate primarily to the refinancing
of UXA's convertible note facilities. Finalisation of the
Company's full year accounts is dependent on UXA refinancing
the existing convertible notes which are discussed in below.
Convertible Notes
UXA currently has on issue two convertible notes with
separate note-holders and with balances and expiry dates as
follows:
1. $779,000 expiring 30 September 2015, and
2. $500,000 expiring 12 April 2014.
A detailed summary of the material terms of each convertible
note can be found in Schedule 1 and
Schedule 2 of the Notice of Meeting plus Proxy lodged by UXA
with ASX on 28 May 2012.
As a result of the failure to lodge the full year 2012
financial accounts with ASX and the resulting suspension of
UXA's shares from official quotation, UXA is in default under
both convertible notes and has advised the respective
note-holders of the default. The consequences of a default
under the convertible notes are that either of the
note-holders may declare the face value of their respective
convertible notes and any accrued interest to be immediately
due and payable.
UXA has been in constant contact and negotiation with both
note-holders and neither note-holder has advised the Company
that it intends to call in their respective convertible notes
at this time. The Company is currently working with both
note-holders to explore all options.
The Company is undertaking a number of capital raising
initiatives, including the potential sale of assets to fund
working capital and reduce or eliminate entirely the
Company's debt. UXA has been approached to consider selling
certain assets and is currently considering the sale of all
or part of the GAA Wireline contracting business and certain
exploration tenements. RB Milestone Group, LLC has been
selected to advise the Company with regards to its financing
options in North America.
43a Fullarton Road Kent Town
SA 5067 Australia T: +61 8 8363 7970 F: +61 8 8363 7963 E:
info@uxa.com.au W: www.uxa.com.au
The Company expects it will take 1 - 2 months to finalise its
planned capital raising and asset sale activities and submit
its annual financial accounts to the ASX, as required for the
resumption of trading. Given that discussions with potential
investors are incomplete, remain on-going and are commercial
in confidence, UXA is not yet able to provide the market more
details at this time. However, the Company plans to release
updates and announcements as additional information becomes
available.
The directors remain confident that UXA will be able to raise
additional funds in the foreseeable future. Unless the
note-holders declare their respective notes due and payable,
UXA's directors are of the opinion that the Company will be
able to meet its debt obligations as and when they fall due.
In the meantime, day-to-day operations are continuing as
usual at UXA. Drilling at Nabarlek is the Company's current
exploration focus, and results will be announced in the
coming weeks. The GAA Wireline Business is also fully
operational, fulfilling its contracts in Qld, SA, WA and the
USA and continues to perform much better than this time last
year.
UXA plans to release all necessary statements as soon as they
are available, and subsequently send the ASX an official
request to lift the trading suspension once the refinancing
activities and the annual audited financial accounts are
completed. The directors acknowledge that a forth- coming
resolution has taken longer than anticipated, and wish to
thank shareholders for their patience in this matter.
Most importantly, UXA aims to have its suspension from the
official list lifted as soon as possible so share trading can
resume and has concentrated its attention on achieving that
end.
The Company will provide a further update to the market as
soon as it is in a position to do so. On behalf of the
Board
Graham Seppelt Company Secretary Ph: 0419 035 297
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