Last checked at 
(Alliance News) - Arc Minerals PLC said Tuesday it has agreed with a consortium of French and Swedish investors to raise USD1.7 million through the issue of unsecured convertible loan notes.
No funds have been drawn down from the notes to date; however the metals explorer said the money would go towards working capital purposes.
The loan notes are interest free and are convertible into Arc Minerals shares at 4.5 pence each, reflecting a 66% premium to the company's closing price on Friday last week at 2.7p.
Shares in London-based Arc Minerals were up 2.8% at 3.19 pence on Tuesday.
The repayment date for the notes is 12 months following the drawdown date, following which Arc will 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. The potential conversion price of 4.5p represents a significant premium to our current share price which benefits all of our shareholders," said Executive Chair Nick von Schirnding.
"Together with the anticipated proceeds from the sale of Casa and Sturec of USD1.8 million and USD500,000 respectively, the cash resources of Arc would be at or above USD4 million which gives us significant firepower to drive forward our exciting exploration programme in Zambia in 2020," von Schirnding added.
On Monday, Arc Minerals announced the sale of its interest in the Sturec gold project in Slovakia to MetalsTech Ltd for up to USD8 million under an option agreement.
By Dayo Laniyan; dayolaniyan@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.