PERTH (miningweekly.com) – The administrators of ASX-listed Kingsrose Mining have announced that the company has raised some A$5.4-million through a secured convertible loan facility to assist with its restructuring.
The gold junior in December 2016 went into voluntary administration, placing its Talang Santo mine, in Indonesia, on care and maintenance, while a review of the company structure and operations were undertaken.
The convertible facility, which has been provided by a group of professional and sophisticated investors, can be converted to equity at 4c a share; however, this will require shareholder approval.
If the loan is not converted into equity, Kingsrose will be required to repay it on the later of either the termination of administration, or any deed of company arrangement.
Meanwhile, the administrators on Friday said firm commitments of up to another A$1-million were expected within the next seven days.
The funds raised under the convertible facility will be used for the ongoing restructure of Kingsrose, to provide working capital and funding for the Way Linggo project.