Gasol has entered into a £1 million convertible loan facility to provide further working capital for the Company to continue the development of its business. The Facility, which has been entered into with African Gas Development Corp, Gasol's largest shareholder, carries an interest rate of 5% payable at maturity or conversion.

The Facility carries a conversion option whereby the lender has the right to call for the conversion of the loan into ordinary shares of Gasol at a price of 0.6 pence per share. Conversion may take place up to 25 November 2012. The Facility is repayable on 25 February 2012, 25 May 2012, 25 August 2012 and 25 November 2012. In each case repayment may be made, at the Company's choice, either in cash or in Gasol's shares subject to a minimum of 0.5 pence.

The participation by AfGas in the Facility is considered a related party transaction under the AIM Rules for Companies. The Directors of Gasol having consulted with Panmure Gordon (UK) Limited, the Company's Nominated Adviser, consider the terms of this transaction to be fair and reasonable insofar as its shareholders are concerned.

As a consequence of entering into the Facility, the conversion terms of each of the £3 million convertible loan facility entered into on 30 December 2010 and the £1 million convertible loan facility entered into on 26 April 2011 are lowered from 1.0 pence to 0.6 pence per share in accordance with the terms of their respective facility agreements.

Ewen Wigley, Gasol's Chief Operating Officer, said: 'We are pleased to have secured further working capital funding from our major shareholder, showing its continued support and confidence in Gasol's ongoing development of the gas-to-power strategy in Africa.'

Tags: Gasol Plc