Orpheus, Coalworks Ltd. agree on convertible notes repayment terms
Wednesday, August 1 2012 - 03:38 AM WIB
ASX-listed firm Orpheus Energy Limited announced that it has agreed with Coalworks Limited, the terms of repayment of its outstanding $2.2 million convertible notes.
It said that the notes will be redeemed for shares in Orpheus Energy at a price of 13cents per share with accumulated interest on the notes up to Sept 6 will be paid in shares at the same price, rather than cash.
The total number of shares to be issued by Orpheus Energy will be 18,181,180 fully paid ordinary shares, consisting of 16,923,077 shares issued in respect of the principal outstanding of $2.2 million and 1,258,103 shares in lieu of accumulated interest.
Executive Chairman Wayne Mitchell said in the statement to the ASX that "in the current capital markets, to pay out our current debt by issuing shares at the same price as our recent share placement represents a great win for our shareholders." He did not elaborate on its projects in Indonesia.
Coalworks Limited earlier said that through its wholly owned subsidiary Orpheus Energy Group Pty Ltd it had started coal loading activity from its B26 coal Joint Venture Project in Longbok river, East Kalimantan. The B26 Coal Project is located approximately 26km from the barge loading site.
Editing by Adianto P. Simamora