28th Jul 2014 09:46
LONDON (Alliance News) - Savannah Resources PLC's GBP350,000 unsecured loan note in Alecto Minerals has been converted into 30.4 million new shares at a 1.15 pence conversion price per share, according to statements issued by the two companies on Monday.
In addition, 1.6 million new shares have been issued in satisfaction of the GBP18,500 interest earned on the convertible loan note that was due October 3.
The move increases Savannah Resources' stake in Alecto to some 173.8 million shares, or a 21% stake in the company.
Savannah Resources' convertible loan note was entered into last October in relation to its sale of gold mining subsidiary AME West Africa Ltd to Alecto.
The new shares are subject to an orderly market agreement. According to Alecto's statement, Savannah has agreed that it will not at any time before October 4 make any transfer or disposal of the new shares except through Alecto's broker "and that any such transfer or disposal shall be effected in accordance with the reasonable requirements of the company [Alecto]."
Alecto shares were Monday quoted up 0.2% at 0.852 pence, while Savannah shares were up 4.4% at 4.70 pence.
By Samuel Agini; [email protected]; @samuelagini
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