Cora Gold agrees extension to loan note maturity date

11th Sep 2023 11:29

(Sharecast News) - West Africa-focussed Cora Gold announced the extension of the maturity date for specific convertible loan rights on Monday, that were set to mature on 9 September.

The AIM-traded firm had issued convertible loan notes in line with a convertible loan note instrument (CLNI) on 13 March, which was dated 28 February.

Initially, the notes, amounting to a total of $15.88m, was to be converted into the company's ordinary shares with a maturity date set for 9 September, which was 180 days post the issue date.

However, following recent discussions and approvals, the noteholders had agreed on several changes to the CLNI, including the extension of the maturity date to 12 March, which would now be 365 days from the initial date of note issuance.

In addition, some noteholders had expressed their desire for an early repayment of their convertible loan notes, of a principal amount of $0.63m, with an added 5% on top.

Taking into account those adjustments, Cora Gold said its current unsecured liability concerning the issued and remaining notes stood at $15.25m.

That amount remained convertible into the company's ordinary shares as per the terms of the revised CLNI.

"I am very pleased with the ongoing support received from Cora's noteholders and long-term shareholders," said chief executive officer Bert Monro.

"The company currently has balances of cash and cash equivalents in excess of $17.25m.

"Following the recent promulgation of a new mining code in Mali, we look forward to the government's lifting of its moratorium on issuing new mining permits such that we may, in due course, progress application for a mining permit over Cora's flagship Sanankoro Gold Project."

Additionally, Monro said the company looked forward to providing progress updates on the funding of the Sanankoro Gold Project, following the appointment of Atlantique Finance to act as sole adviser in the structuring and mobilisation of a medium-term loan of $70m in CFA franc to support funding the development.

At 1007 BST, shares in Cora Gold were up 1.61% at 3p.

Reporting by Josh White for Sharecast.com.