Niko Resources Ltd. has entered into an agreement for a US$60 million loan (the "Loan") to be funded by a group of institutional investors.

The Loan will bear interest at 7.00% per annum, payable quarterly, and will mature on July 17, 2015 with no scheduled amortization. The Company has the right to prepay the Loan after one year without penalty. The Loan will be guaranteed on an unsecured basis by the Company's subsidiaries that directly or indirectly own the Company's interests in the D6 Block in India and will secured by pledges of the shares of the Company's subsidiaries that own the Company's interests in the NEC-25 Block in India and two blocks in Indonesia.

Niko estimates the net proceeds from the Loan will be approximately US$52.5 million, after deducting the original issue discount and the estimated related expenses payable by Niko. Under the terms of the Loan, the net proceeds can be used for funding of working capital requirements, with drawdowns to occur in separate tranches on or before July 31, 2013.

Tags: Niko Resources Ltd.