07/10/2014 - 10:24

Minbos to pay debt with share issue

07/10/2014 - 10:24

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Minbos Resources will issue more than 203.3 million new ordinary shares and 93.3 million new unlisted options to investors as part of its conversion of outstanding convertible notes and securities.

Minbos to pay debt with share issue
Exploration activity at Minbos' phosphate project in Angola.

Minbos Resources will issue more than 203.3 million new ordinary shares and 93.3 million new unlisted options to investors as part of its conversion of outstanding convertible notes and securities.

The conversion into new shares will extinguish the company’s obligations to repay a total of $610,109.

The company announced it had repaid the $100,000 principal amount of the $200,000 convertible security assigned to sophisticated investors in March, plus $20,000 in lieu of interest and 10 million unlisted options.

The unlisted options, expiring December 30 2016, are exercisable at 1 cent.

Minbos said in an announcement that convertible security holders agreed to convert the remaining $100,000 to shares at 0.3 cents per share, to conserve the company’s funds.

The company also announced it had secured new conversion terms in relation to the convertible notes issued to former Minbos non-executive director David Reeves last year.

Mr Reeves has agreed to convert the $250,000 principal plus $10,109.60 interest to ordinary shares at 0.3 cents per share.

The new terms for the Reeves facility forego the agreed conversion price of a 50 per cent premium to the 20-day volume weighted average price of Minbos shares prior to the date of execution of the agreement.

Additionally, the company received conversion notices from the $250,000 facility established in August 2013, under which it will issue 83,333,332 ordinary shares plus a free attaching unlisted option for each new share.

The convertible note facilities for up to $800,000 throughout the year to June 30 were managed and arranged by CPS Capital Group.

The company also completed a two-for-one $1.6 million rights issue and shortfall to shareholders in July.

Minbos shares were last trading at 0.4 cents at 9.45am WST.

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