3rd Jun 2019 15:07
LONDON (Alliance News) - Richland Resources Ltd on Monday said it has secured a further extension for its GBP400,000 and USD150,000 secured convertible loan facility.
In addition, the Australian sapphire producer said it is in talks regarding the funding and disposal of the Capricorn sapphire mine - which is owned by Richland subsidiary Capricorn Sapphire Pty Ltd - in Queensland, Australia.
The AIM-listed company said it has agreed and executed a sixth addendum to its pre-existing convertible loan facility - which was first announced in June 2018 - to further extend the maturity date to the end of June from Friday last week, with all other terms unchanged. This is the fifth time the company is extending the maturity date of the loan.
Richland said it is currently in discussions with the provider of the facility to potentially increase the quantum of the facility to provide additional working capital.
Turning to Capricorn, the company said it was engaged in discussions with potential strategic investors to procure sufficient funding to enable the recommencement of production at the Capricorn sapphire mine or, alternatively, was seeking to conclude ongoing negotiations with different parties in relation to the potential sale of all or a part of Capricorn.
As of Monday, the company said it is now focussed on pursuing the sale of all or part of Capricorn Sapphire and remains in discussions, with one party in particular, with regard to the potential sale of the entire Capricorn Sapphire project.
"There can, however, be no guarantee that the company will be able to either secure the requisite funding to be able to re-commence operations or conclude discussions with regard to the potential disposal of Capricorn Sapphire," Richland said in its statement Monday.
The stock was untraded on Monday, last quoted at 0.09 pence a share.
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