Homeland Energy Group Announces Credit Facility With ICICI Bank of US$30 Million
TORONTO, CANADA -- (Marketwire) -- 07/04/11 -- Homeland Energy Group Ltd. (TSX: HEG) ('Homeland' or the 'Company') is pleased to announce that it has signed a facility agreement with ICICI Bank to provide a credit facility of US$30 million to provide funds for capital expenditures and development of the Company's assets. The facility will bear interest at the 90 days LIBOR 4% payable quarterly and will have a term of 6 years. Repayment of the facility will commence 24 months after the first drawdown. The loan will be fully secured against the assets of the Company and its subsidiaries. GMR Energy Limited, the controlling shareholder of the Company, has agreed to subordinate its security interest in favour of ICICI Bank. GMR Infrastructure Limited, an affiliate of GMR Energy Limited, has also agreed to provide a guarantee in respect of the facility. The facility will be subject to mandatory prepayments if the Company raises funds from alternative sources during the term of the loan.
This facility will allow the Company to expand operations at Kendall and continue to work towards the development of the Eloff project. It will provide the Company with the flexibility necessary to implement the Company's business plan.
Homeland Energy Group Ltd. (TSX: HEG) is a coal producer with operations in the Witbank area of South Africa. The company also has a large-scale development property in South Africa and exploration interests in Southern Africa. Homeland will continue to seek out interests in additional coal projects in South Africa and neighbouring countries as well as internationally. Homeland is a shareholder in Homeland Uranium Inc., a Canadian uranium exploration company focused on projects in Niger and the United States. Homeland Energy Group Ltd. is currently traded on the Toronto Stock Exchange under the symbol 'HEG' with 471,204,149 common shares issued and outstanding.
Contacts:
Homeland Energy Group Ltd.
Ashis Basu
Chief Executive Officer
1 416 506-1979
info@homelandenergygroup.com
www.homelandenergygroup.com