It was reported by the Board of the BVI-registered company Premier African Minerals Limited that together with Regent Mercantile Holdings Limited they agreed to extend the repayment terms of the convertible loan note for US$350,000, which was entered into in June 2019.
Under the terms of the Loan Agreement and related Subscription Agreement, signed with Regent, the BVI company had to make two equal payments on 1 August 2019 and 1 September 2019. In case Premier failed to make direct repayment of the Loan Agreement, Regent could convert any percentage of payment into new shares of the BVI company, at a conversion price equal to 90 per cent of the daily volume weighted average price.
According to the extension agreement, the Premier will have to repay the principal amount including any interest under the Loan Agreement until 31 January 2020. In consideration of the repayment extension for the period, Regent will have the right to elect a Conversion of the Principal Amount. Upon the expiry of the period the BVI company will have 5 days to settle any outstanding amounts under the Loan Agreement, including all outstanding interest thereon.
Talon Metals Corp. announced that it has raised total amount of C$9.825 million, and is about to close additional tranche of C$350,000 which will result in the BVI company raising a total of C$10.175 million. The raised funds will be mainly used to make the initial payment in respect of the Tamarack Project, under the existing joint venture agreement.
Also, Talon Metals entered into a series of conversion transactions with Resource Capital Fund VI L.P., which has eliminated approximately C$32 million in debt. The company has completed private placement offering of 39,375,000 common shares at a price of C$0.08 per share for gross proceeds of C$3.15 million. The second tranche is expected to have gross proceeds of C$350,000.
In addition, wholly owned subsidiary of the BVI company, Talon Nickel (USA) LLC, has agreed to grant a net smelter returns royalty to 10782343 Canada Limited, a subsidiary of Triple Flag Mining Finance Bermuda Ltd., in consideration of the payment of US$5.0 million. The company and its subsidiaries have agreed to guarantee the payment and performance obligations under the royalty agreement. The proceeds will be used by Talon Metals to make the initial US$6 million payment due under the JV Agreement.
As a result of the Convertible Loan Conversion and the Promissory Note Conversion, the C$3.15 million private placement and the issuance of shares to its joint venture partner, Resource Capital Fund will hold approximately 55.6% of the issued and outstanding shares of Talon.
Chaarat Gold Holdings Limited announced that it has entered into a US$10 million loan agreement with a previous note holder in the company who is neither management nor a board member. The proceeds from the loan will be applied to BVI company’s aim of building a leading emerging markets gold company with initial focus on Central Asia and the FSU, and to support the acquisition announced in October this year.
The loan secures funding of US$10,000,000, and the guarantor is Chaarat’s subsidiary Zaav Holdings Limited. The loan is repayable after six months or nine months, at the company’s option. The total accrued interest will be fixed amount of 6.5% of the loan amount if the Loan is repaid within six months or 9.75% of the loan amount if the Loan is repaid within nine months.
BVI-registered company Premier African Minerals Limited announced that on 4 June 2018 it entered into a loan with a company owned by a Trust beneficially owned by BVI company’s director, for a gross value of US$300,000. Premier African Minerals is multi-commodity mining and natural resource development company focused on Southern Africa and having projects in Zimbabwe.
The loan is non-interest bearing and has a maturity of 60 days. The entire amount of the loan will be repaid by the company, including all fees within five days following the maturity of the loan. The loan is not convertible, it does not include share-based repayment or warrants. It also carries an implementation fee of US$15,000 (5%) and a redemption fee of US$15,000 (5%).
Premier African Minerals will not draw down against any equity or equity linked financing facilities, until the repayment of the loan. The loan is secured against company’s 6,128,822 shares in ARC Minerals Limited.