Last checked at (Sharecast News) - Arc Minerals has entered into definitive agreements with a consortium of French and Swedish institutional and high net worth investors, it announced on Tuesday, to raise approximately $1.7m through the issue of unsecured convertible loan notes.
The AIM-traded firm said no funds had been drawn down under the convertible loan notes as of Tuesday morning, but it said it was intended that the proceeds from the facility would be used for working capital purposes.
It said the key terms of the facility included that it was interest free, and that the loan notes were convertible into ordinary shares of the company at the option of the relevant holder at 4.5p per ordinary share, representing a premium of 66% to the closing price of 2.7p on 27 December.
Alternatively, in the event that Arc undertakes a placement of shares, a lender would be able to convert all or part of the principal at the relevant placement price, subject to a minimum of 110% of the principal.
The repayment date was 12 months following the drawdown date, with Arc to repay 120% of the aggregate value of the principal amount.
"This is an excellent deal for Arc which provides competitive funding for us and will materially strengthen our balance sheet," said executive chairman Nick von Schirnding.
"The potential conversion price of 4.5p represents a significant premium to our current share price which benefits all of our shareholders.
"Together with the anticipated proceeds from the sale of Casa and Sturec of $1.8m and $0.5m respectively, the cash resources of Arc would be at or above $4m which gives us significant firepower to drive forward our exciting exploration programme in Zambia in 2020."
At 1029 GMT, shares in Arc Minerals were up 6.35% at 3.3p.
14 Jul 2020 16:18
Director dealings: Arc Minerals executive makes share purchase
(Sharecast News) - Arc Minerals revealed on Tuesday that finance director Remy Welschinger had acquired 100,000 ordinary shares in the AIM-listed explorer.
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