29th May 2015 15:29
LONDON (Alliance News) - GCM Resources PLC Friday said it has entered into a GBP3 million convertible loan agreement with Malaysian-based Revenue Anchor Sdn Bhd.
The company said the loan is for a two-year period and is interest free. Revenue Anchor has the right to convert the outstanding balance of the loan at any time at a subscription price of 11.0 pence per share, but it will not be allowed to exceed a 30% stake in GCM, it said.
GCM shares were up 23% to 13.38 pence per share near the close Friday. It has a market capitalisation of GBP8.0 million.
If Revenue Anchor exercises its right to convert, the shares will be locked-up and may not be disposed of for at least two years, and GCM can repay the loan early if it elects to do so, it said.
"It is with great pleasure that I am welcoming Revenue Anchor SDN BHD as an important financing partner for GCM. The funding we have secured will be sufficient for GCM to pursue its goals of furthering the Phulbari coal project for the foreseeable future," said Chairman Michael Tang.
By Joshua Warner; [email protected]; @JoshAlliance
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