(Alliance News) - Metals Exploration PLC confirmed Friday it had extended the standstill agreement with its lenders and major shareholders until July 31 as debt restructure talks continue.
Metals Exploration explained the holders of its mezzanine debt facility - being lenders HSBC and BNP Paribas and major shareholders MTL Luxembourg Sarl and Runruno Holdings Ltd - had agreed to the follow up extension.
Under the standstill agreement, Metals Exploration does not need to make any principal of interest payments on its debt.
On Tuesday, the miner explained it would have to pay USD44.1 million in both principal and interest payments on its senior facility. It currently does not have the funds to make these payments.
"The purpose of the standstill agreement is to allow the company and all its lenders time to evaluate, and consider possible solutions to, Metals Exploration's current financial position," Metals Exploration explained on Friday.
Shares in Metals Exploration closed 6.9% lower at 0.60 pence in London on Friday.