LONDON (Alliance News) - Polo Resources Ltd on Tuesday said its Polo Investments Ltd subsidiary entered into a secured SGD5.0 million nominal value 15% redeemable convertible note with Universal Coal Resources Pte Ltd.
Universal, a company incorporated in Singapore, has entered into a conditional agreement to acquire an indirect 75% interest in PT Transcoal Minergy Coal Project, a company incorporated in Indonesia, from a Pan Asia Corporation Ltd subsidiary, according to Polo.
PT Transcoal Minergy Coal Project is the owner of a production operation mining business licence for a mining concession area in Mantewe District, Tanah Bumbu Regency, South Kalimantan Province, Indonesia.
"Universal is targeting a Singapore Stock Exchange Catalist Board listing and the note entitles Polo to convert the principal outstanding plus any accrued interest into not less than 20% of the share capital of Universal as enlarged by such conversion at any time up to 18 months from draw-down, or earlier upon the receipt of approval in principle to list. The funding under the note will enable Universal to undertake value adds to the TCM Coal Project in addition to progressing its proposed listing. The note is repayable 18 months from draw-down unless previously converted," Polo said in a statement.
The note is secured by PT Transcoal Minergy Coal Project and underwritten by a personal guarantee and undertaking by Boelio Muliadi, an Indonesian national and major shareholder of Universal, according to Polo, guaranteeing the repayment by Universal of the principal amount and any accrued interest. It also provides an undertaking to meet all the funding requirements of Universal and the TCM Coal Project for the proposed listing on or before December 31, 2017.
Shares in Polo were down 0.5% at 3.99 pence Tuesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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