JSE-listed Mantengu Mining will issue 4.98-million shares to its creditors, to settle its R7.5-million creditor balance.
This comes as certain parties to loan contracts, which the company previously entered into, have agreed to convert their debt claims against Mantengu into equity at a rate of R1.50 of debt per Mantengu ordinary share.
This represents a 93.58% premium to the 30-day weighted average traded price prior to the date on which the settlement was agreed, namely February 29.
Mantengu is in the process of transforming into a mining, mining services and energy company. It is focused on chrome mining in South Africa.