By Lisa Kerner
Charlotte, N.C., Sept. 18 – Metals Exploration plc said it is in final discussions to receive commitments from certain shareholders to raise up to $5 million through the issuance of debt securities with an expected coupon of 20% on or before Oct. 31.
The securities will be available for issue until Dec. 31, and interest will be capitalized until Metals Exploration has free cash flows available to repay the securities and interests, according to a news release.
Proceeds from the debt securities will be used for additional working capital and contingency funding should the Runruno Processing Plant project be delayed.
The debt securities are expected to be unsecured and subordinate to the company’s $83 million facility agreement with HSBC and BNP Paribas.
Share offer
In addition, the company announced commitments from certain existing shareholders to raise $5 million through the issue of 108,033,333 new ordinary shares at 3p per share.
The company plans to make available a maximum of 100 million new ordinary shares by way of an open offer to its shareholders, also at 3p per share, according to a news release.
Proceeds will be used for the Runruno Processing Plant.
The placing shares are expected to be admitted for trading on AIM on or about Sept. 24 and have been subscribed for by MTL (Luxembourg) Sarl, Runruno Holdings Ltd. and Ruffer LLP.
Based in London, Metals Exploration is a natural resources exploration and development company operating in the Pacific Rim, with a particular focus on the Philippines.
New shares
| Issuer: | Metals Exploration plc
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| Issue: | Ordinary shares
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| Amount: | $5 million
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| Shares: | 108,033,333
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| Price: | 3p
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| Investors: | MTL (Luxembourg) Sarl, Runruno Holdings Ltd. and Ruffer LLP
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