Re-financing of Centennial will involve settling secured and...

Re-financing of Centennial will involve settling secured and unsecured creditors of between $2.5m and up to $5.0m respectively in addition to working capital. Of this, providers of approximately $3.5m of funding are prepared to have this formalised into new loan agreements.

ASX has granted the necessary waivers from listing rules 7.11.3 and 7.15, subject to standard conditions, and the Company intends to lodge a prospectus for a rights issue as soon as practicable.

A non-renounceable 5 for 2 rights issue at 0.4 cents per share,raising a maximum of up to ~$10.4m, (before costs) is presently contemplated.

The successful completion of a maximum raising would facilitate the retirement of all financial obligations leaving additional working capital. The Company expects to be able to provide further details on the terms and conditions of the short term loan facility during this week and further updates on the capital management initiatives including a timetable for the rights issue will be provided as they develop. The securities of Centennial will remain suspended until further notice. An Appendix 3B is attached noting the redemption and cancellation of the Convertible Notes in full.