Aurora notes the release today by Eureka Energy Ltd regarding the execution of facility documents for a conditional debt facility with Macquarie Bank. As a shareholder, Aurora is concerned about the terms of the facility, and in particular the details concerning the possible grant of options, the details of which were only announced today, as well as a “make whole” payment of up to A$3.75m which Eureka is required to be paid to Macquarie Bank on drawdown of the initial tranche of US$15 million.
Aurora also notes a Dow Jones article issued today which states “Aurora is exploring the
withdrawal of the bid because it is worried the up to US$50 million debt facility that Eureka has lined up through Macquarie Bank is too costly and can be drawn down without shareholder approval.” Aurora notes whilst it has instructed its lawyers to investigate the avenues that are
open to Aurora in light of the announcement today by Eureka of the agreement to grant options to Macquarie Bank, no decision has been made in that regard should such an avenue be open to Aurora.
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