5th Mar 2014 09:29
LONDON (Alliance News) - Strategic Natural Resources PLC Wednesday said it is continuing in talks with a potential strategic investor to commence recapitalisation of the company.
The natural resources developer said it is currently evaluating a revised financing proposal involving the investor, and it is seeking proper evidence of funding from the investor which should allow of certain funds over the course of this month.
The company said if the revised financing proposal is not agreed, Strategic Natural is in discussions with alternative providers of finance at a preliminary stage.
Strategic natural noted that if it is unsuccessful in securing any additional investment, it will need to consider the company's options for protecting the interests of creditors.
The company said it is receiving pressure from its 74%-owned Elitheni Coal Ltd, after Elitheni told the company that Thelo Rolling Stock Leasing Ltd has commenced legal proceedings to repossess the containers that Elitheni currently rents from Thelo, due to failure to make payments.
Strategic Natural said it continues to be in dialogue with Elitheni and Thelo and remains hopeful that a commercial solution can be made.
The company added that it is in discussions with its lender Land Consultants Ltd, concerning the possible deferral of the repayment of its loans for a further six months and the possible conversion of interest due to Land Consultants into ordinary shares in Strategic Natural.
However, the company already secured a deal in January to extend its short-term loan facility with Land Consultants to June 30, in return for security over materially all of the assets of its subsidiary Acharnian Mining Ltd and an agreement to pay an extra GBP100,000 upon the repayment of the facility.
Strategic Natural shares were down 23% to 7.14 pence, making it the biggest AIM faller in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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