Realm delays tranche 2 payment, gets loan
Monday, July 2 2012 - 08:58 AM WIB
ASX-listed firm Realm Resources Limited recently stated it has decided to amend the date for the tranche 2 payment, the time at which its interest in the Katingan Ria Coal Project in Indonesia is to be increased to 75 percent from the current 51 percent, to two months from the satisfaction of condition precedent, with June 30 as the cut off date.
The company anticipates that all Tranche 2 Conditions Precedent, including the project?s Pinjam Pakai permit procurement, should now be satisfied by December 2012.
?Should this be the case, then the Tranche 2 Payment would be made in February 2013,? the company stated in a document submitted to the ASX.
Realm has also received loan of up to US$5 million from its major shareholder Taurus Funds Management to fund its resource/reserve drilling programs, project optimization activities as well as general working capital.
The loan is payable quarterly in arrears and may be subject to agreement, be paid by way of issue of ordinary shares in Realm at the 5 day VWAP for ordinary shares. With 8 percent interest rate, the facility is repayable on the earlier of the project equity raising or September 30, 2013.
?If Realm is issuing ordinary shares, Taurus may elect to convert their loan into ordinary shares at the same issue price per share as the equity raising, in which the lenders are entitled to a facility fee of 2 percent of the total facility amount and will be granted options over a total of 100,000,000 shares, exercisable at 5c per share at any time in the next 5 years and Realm is required to use funds raised on the exercise of the options to repay any outstanding amounts under the facility,? the company said.
Editing by Audy Zandri