30th Apr 2014 14:22
LONDON (Alliance News) - Red Rock Resources PLC Wednesday said it had agreed to issue an unsecured convertible loan note of GBP550,000 to YA Global Master SPV Ltd, and will use the funds to reduce its debt and for working capital.
In a statement, the mining and exploration company with gold interests in Colombia, Kenya, and Ivory Coast, said the 12-month notes yield 10% a year and are able to be converted into ordinary shares at any time up until maturity.
The conversion price will be determined by a formula equal to 94% of the three lowest daily volume weighted average prices during 15 consecutive trading days beginning on the first trading day immediately following the delivery of a notice of conversion by the bondholder, it said. The notes fall for repayment on 29 April 2015 if not previously converted.
YA Global will withhold GBP90,000 of the funds and released the money in tranches of GBP45,000 in May and June provided that all shares due to be delivered to YA Global have been delivered by these dates.
"This fundraising substantially completes the deleveraging efforts initiated by the company in 2013," Red Rock Chairman Andrew Bell said in a statement. "This effort, while challenging at times, has improved the company's current financial position."
Red Rock Resources shares were up 5.9% at 0.339 pence Wednesday.
By Steve McGrath; [email protected]; @SteveMcGrath1
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