LONDON (Alliance News) - Oxus Gold PLC said Tuesday that it has inked a convertible loan note placing deal with Darwin Strategic Ltd for the issue of up to GBP1.2 million notes with warrants to subscribe for shares in the company.
Oxus placed a first tranche of GBP100,000 loan notes and issued 190,476 warrants on Tuesday. The warrants are exercisable at 5.25 pence over the next five years. Shares in the company were down 13% at 3.67 pence Tuesday morning.
Oxus said it will use the proceeds to finance its working capital.
Under the agreement, Oxus may place up to GBP100,000 of loan notes every four weeks, for a minimum of a year, subject to Darwin's consent. Loan notes will be placed at a price of 90% of the par value of each loan note, and Darwin itself will subscribe for any loan notes and warrants that are not placed with investors.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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