(Alliance News) – Corcel PLC on Monday said it has successfully refinanced its debt obligations, agreeing to make a cash repayment to its lenders Riverfort Global Opportunities PCC Ltd and YA II PN Ltd in the next three months.
The London-based mining and mineral resources development company said it had successfully refinanced debt obligations of GBP673,348, after agreeing to make a cash payment of GBP235, 671 to its lenders in the next three months.
He said a 5% refinancing fee will be added to the outstanding balance. After refinancing and repayment, a new principal amount of GBP471,343 will remain.
This new balance will be subject to a twelve-month repayment holiday and then repaid in eight equal monthly installments starting in February 2024, Corel said.
The balance of the loan will bear an annual interest rate of 6% and will be convertible at a fixed price of 0.40 pence per share, a 54% premium to the closing price on 27 January.
Shares in Corcel were down 3.9% at 0.25p each in London on Monday afternoon.
It said it retains the right to repay the loan early in cash, subject to a 5% early repayment fee.
“The conclusion of a very constructive negotiation with our long-term lenders has resulted in an excellent result for the company, which has now cleared its immediate and mid-term debt obligations and given Corcel a solid runway to advance its mineral exploration projects, with the initial focus on the upcoming work program at Mt. Weld,” said CEO Scott Kaintz.
On Wednesday last week, Corcel completed the sale of a 100% stake in the Burwell Energy Storage project outside Cambridge to Burwell AL Ltd for a cash consideration of GBP200,000, plus reimbursement of Corcel’s grid deposit of GBP50,000,
This helped reduce its corporate debt ahead of the refinancing announced on Monday.
By Greg Rosenvinge, Alliance News reporter
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