The Company confirms they have today entered into an amendment to the US$2m arranged by Riverfort Global Capital Ltd (“Riverfort”) and announced on 19 May 2017.
The terms of this amendment are:
– For the next four months there will be no conversion of principal amount if the share price of the Company remains below 0.34p (a 51% premium to yesterdays close);
– The final repayment date of 15 May 2018 is extended to 15 September 2018 to cover the main production season at West Kytlim.
– The scheduled repayments for the next 4 months are significantly reduced to US$25,000 per month in cash plus interest. This is designed to direct more cash into mining preparation, including work on site, and at the same time to avoid share dilution;
– Warrants totalling 80,749,333 are cancelled and replaced by 109,196,618 new warrants at a price of 0.34p, being a 20% premium to the VWAP in the 30 days preceding this amendment. The warrants issued shall have a subscription period of three years from 15 May 2017.
– A 10% restructuring fee is to be recouped at the end of the term by addition to the principal amount.
Christian Schaffalitzky commented:
‘We are excited by the prospects that the development of Monchetundra can bring during 2018, while aiming to operate successfully at West Kytlim. We appreciate the grace period here offered by our funding partner and the confidence they have shown in the Company generally and specifically in the West Kytlim Mine and its ability to generate revenue in the 2018 mining season.
The entire board of directors, as recently demonstrated, share this confidence. Our team is currently busy working on the best options to ensure a successful mining season in 2018, as the Monchetundra project progresses through permitting. Furthermore, the Company continues to pursue new options that could enhance these projects, provide greater commodity diversity and to increase production volumes.’
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