LONDON (Alliance News) - Metals Exploration PLC on Monday said it renewed once more a standstill agreement with its lenders and major shareholders for a further month until June 28.
The company renewed the agreement with lenders HSBC and BNP Paribas and major shareholders MTL Luxembourg SARL and Runruno Holdings Ltd as holders of its mezzanine debt.
Under the agreement, Metals Exploration is relieved of making both principal and interest payments due in relation to the Runruno facility agreement and the mezzanine debt facilities.
The purpose of the agreement is to allow the company and its lenders time to evaluate, and consider possible solutions to, Metals Exploration's current financial position.
Without a standstill, the miner would have to pay USD44.1 million of both principal payments and interest on its senior facility. It currently does not have the funds to make these payments.
The standstill was first signed in April and renewed a first time to the end of May.
Metals Exploration shares were trading 1.2% lower at 0.67 pence each.
Metals Exploration (MTL)