Territory Resources has executed an agreement with its financiers, hedge book facility provider and major shareholder Noble Resources for the transfer of the company's bank debt to Noble.
The transfer is scheduled to settle today and will result in the consolidation of all of the minerals producer's debt to Noble.
Noble will purchase two short term loans totalling $17.6 million owed by Territory to its bank hedge facility provider, together with the bank's interest in securities relating to the loans.
The loans are currently secured by a fixed and floating charge over Territory's assets, a mortgage over its shares in key subsidiaries and a mining tenement mortgage over its Frances Creek haematite iron mining leases.
They are also secured by a fixed and floating charge over the assets of Territory Iron Pty Ltd - a wholly owned subsidiary of Territory - and a guarantee and indemnity from Territory Iron, which guarantees the performance of Territory's obligations to the bank and Noble.
Meanwhile, Noble has given Territory an extension to the repayment date of its loans until October 19.
This will allow further discussions regarding a restructure of ongoing debt arrangements with Noble, Territory said in a statement.
Territory's shares remain suspended from trading until the continuing debt arrangements with Noble can be formalised.
