30th Dec 2024 08:39
(Alliance News) - Aterian PLC on Monday reported good progress in discussions with a potential partner to finance Aterian's expansion into trading minerals.
The London-based miner focused on Africa also issued GBP150,000 in convertible bonds to some existing shareholders. These convert into Aterian shares at a fixed price of 70p per share and carry a 12% per annum coupon rate.
Aterian shares were untraded at 42.00 pence each on Monday morning.
The bonds are due this coming March 29 and are intended to provide short-term funding "while the company continues discussions regarding a larger financial commitment", Aterian said.
The company plans to launch a minerals trading arm, and is "confident" about negotiations with a possible partner to secure capital and operational support.
Aterian expects to update further upon recommencement of its metals trading business, which is expected early 2025.
"The board views the existing share price as seriously undervalued and we could not support a new equity issue below our most recent equity issue price of 70 pence per share", noted Aterian's Chair Charles Bray.
"Simultaneously, our ongoing partner discussions reflect our serious ambitions to advance Aterian's objectives of having a revenue-generating arm of the business to fund exploration and overheads and advance exploration partnerships."
By Holly Munks, Alliance News reporter
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