16th Jul 2014 13:58
LONDON (Alliance News) - Metal Tiger PLC shares dropped 25% Wednesday after it said it has entered into an agreement with investment company Paternoster Resources PLC to pay off a loan from Paternoster via the issuance of new Metal Tiger shares.
Metal Tiger, which changed its name from Brady Exploration PLC last month, took out a loan agreement with Paternoster in April last year, which provided the company with a loan of GBP60,000 in cash, bearing an interest rate of 10% per year.
However, Metal Tiger said Wednesday that it has reached an agreement with Paternoster for it to settle GBP50,000 of the loan through the issue of 10 million new shares at 0.5 pence each, with the balance of the loan plus accrued interest, being settled by GBP17,315 in cash.
Paternoster holds a 10.2% shareholding in Metal Tiger.
Metal Tiger shares were trading at 0.600p Wednesday afternoon, down 25%. Paternoster Resources shares were up 3.1% at 0.263p.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Paternoster ResourcesMTR.L