Update ON Mineral Hill’S Oil & Natural Gas Project
Trading Symbols:
TSX Venture Exchange: MHI
Frankfurt Xetra: N8Z1/WKN: AODLHP
OTC Market (US): MHIFF
NEWS RELEASE
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Mineral Hill Industries Ltd.
-Mayfield Business Centre- Ph: 604-278-1135
#1140–13700 Mayfield Place, Fx: 604-278-1139
Richmond, BC, V6V 2E4 Email: [email protected]
Canada www.mineralhill.com
UPDATE ON MINERAL HILL’S OIL & NATURAL GAS PROJECT
Richmond, BC, Canada – July 5, 2017
Mineral Hill Industries Ltd. (“Mineral Hill” or “Company”) is pleased to announce that CPS Energy
Resources Limited (“CPS”) has notified the Company of the positive developments in respect to the future
project bond financing of the OPL -236 project . CPS is the UK incorporated private company of which
Mineral Hill proposed to acquire 45% of CPS’ issued shares and has the irrevocable Right of First Refusal to
acquire additional 8% of the outstanding shares of CPS held by two CPS shareholders (see also the
Company’s announcement of January 16, 2017).
In its announcement to the Company CPS states the following:
“CPS is pleased to update on its progress in respect to the bond being created to develop the OPL -236
project. As announced on December 5 th, 2016 by Mineral Hill, MHI Mass Energy Financing plc was
incorporated in the UK (“MMF”) for the purpose of facilitating a USD Zero -coupon Bond issue to net MMF
USD 60M (the “MMF -Bond”). The MMF -Bond will back -up all future developments for the OPL -236
project and is intended to be completed after closing the proposed private placement and allow the whole five
year government approved work programme to be undertaken. An agreement has been signed with a Danish
based financial services company to assist with the issue of the bond and there have been discussions with
two substantial insti tutional investors over a number of weeks, which would involve an investment of
between $60-70m for a ten year term conditional upon the completion of its due diligence, particularly on the
insurance protection.
A US based insurance company has completed due diligence and it is expected that they will confirm that
they will insure the bond which will provide additional investor security in the form of insurance. The terms
for the insurance have been articulated and agreed upon based on the draft paperwork which has been shared
with two potential major bond investors. A further announcement will follow when the insurance is in place,
expected soon.
CPS has instructed RH Capital Limited of London, UK (“RH Capital”) to distribute the bond to raise funds if
neither of the two current interested parties would proceed. RH Capital ha s had meetings in London and
Dubai and has a number of parties willing in principle to assist with the distribution of the bond, supported by
a BBB+ insurance wrap for both capital and rolled up interest.”
Mineral Hill appreciates the effort of CPS especially in respect to the extension of bond’s maturity to ten
years compared to the maturity date quoted in the above mentioned announcement of January 16, 2017.
The Company seeks Safe Harbor
For further information, please contact: Dieter Peter, President & CEO Phone: (604) 278-1135
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.