Restructure of Mt Muro facility becomes formally binding

By Ruli Setiawan

ASX-listed Straits Resources Limited has entered into formal binding documentation in relation to the restructure of the Mt Muro silver prepayment facility of Straits? wholly owned subsidiary, PT Indo Muro Kencana.

In accordance with the restructure agreement, Straits and its associated entities have today made a cash payment of US$7.5 million to the Senior Lender. The restructure will formally become effective once certain conditions precedent have been complied with, including Straits shareholder approval for the issue of the convertible notes as outlined in the 5 August announcement. A shareholders? meeting will be called in the near future seeking that approval, the firm said in a statement made available on Tuesday.

Executive Chairman of Straits, Andre Labuschagne said in a statement filed with the Australian Stock Exchange, ?Execution of the restructure documentation is an important step in enabling Straits to exit the Mt Muro gold operation. The mine remains on care and maintenance however as previously announced, we are seeking potential buyers?

Editing by Johannes Simbolon