LONDON (Alliance News) - Crusader Resources Ltd said Tuesday it requires immediate funding to cover short-term working capital needs and therefore intends to issue further convertible notes.
The new notes will have a principal amount of USD100,000 each and will carry an interest rate of 8% per year, payable in shares.
Back in October, Crusader shares were suspended from trading on both AIM and ASX pending clarification of the firm's financial position. The shares continue to be suspended.
"The company's working capital position had been adversely affected by additional costs and fees incurred in relation to the admission to AIM earlier in the year, the non-payment by the purchaser of the Posse iron ore mine of the deferred consideration payments, a lower than anticipated reduction in corporate and operational overheads and additional third-party consultants' fees," Crusader explained.
In the meantime, since October, the firm has received payments for the Posse iron mine resolving the situation and has already issued secured convertible notes to raise AUD1.0 million.
On Tuesday, Crusader added that it appointed Beaumont Cornish as nominated adviser with immediate effect.
Furthermore, John Evans, an existing director of the company, agreed to take on the role of finance director with immediate effect. Andrew Beigel will continue as non-board chief financial officer.