Sumatra Copper & Gold: Provident, Saratoga convert loan to shares
Thursday, October 2 2014 - 03:19 AM WIB
ASX-listed Sumatra Copper & Gold Limited announced Thursday that it has received conversion notices under the terms of the Convertible Loan Facility Agreement dated 4 December 2013 from each of Provident Minerals Pte Ltd and PT Saratoga Investama Sedaya Tbk requesting a conversion of the full capitalized value of the Facility, including interest and the Facility fee, into CHESS Depositary Interests (CDIs) in the company.
Provident and Saratoga will be issued a total of 163,833,929 new CDIs, Sumatra Copper & Gold said in a statement. The company said it will apply for the listing of the new certificates of CDI on the ASX, a process which is expected to take two days.
The conversion price used, under the terms of the Facility, is A$0.046 per CDI; this calculation is 90 percent of the volume weighted average price of the company's CDIs over the 10 trading days on ASX leading up to and including 29 September 2014.
Since the drawdown of the original amount of US$4 million under the Facility, as announced on 6 March 2014, the Facility has been extended on four occasions as announced on 26 May 2014, 3 July 2014, 31 July 2014 and 12 September 2014. The current principal outstanding under the Facility at the conversion date is US$6.1 million. Interest is payable at a rate of 10 percent and a Facility fee of 3 percent is payable.
Both of these amounts have been capitalized and will convert into CDIs in addition to the principal outstanding. Based on the applicable exchange rates the accumulated capital, interest and facility fee payable is A$7,536,361, Sumatra Copper & Gold said.
The loan facility is used by the company to help fund the development of its Tembang gold and silver project in Sumatra.
Sumatra Copper & Gold also said that negotiations with Nomura Singapore Limited in regards to the arrangement of a proposed funding package for a subsidiary of the company to develop the Tembang project, as per the Nomura mandate announced to ASX on 12 September 2014, are progressing as expected.
Editing by Reiner Simanjuntak