JOHANNESBURG (miningweekly.com) – Mineral exploration company Ortac Resources has agreed to convert its secured convertible loan notes, valued at $828 472, and to partially convert its call option agreement, into an equity position of 14% in Zamsort, which owns the Kalaba copper and cobalt project, in Zambia.
The remaining balance of the loan notes have been extended to December 31, 2018.
CEO Vassilios Carellas said the company was pleased to convert its loans into equity in Zamsort and looked forward to helping Zamsort transition from a licence holder to explorer and producer.
On March 30, 2015, Ortac subscribed for $600 000 of secured convertible loan notes, convertible into a 10.71% stake in Zamsort and entered into an option entitling Ortac to subscribe for a further $600 000 secured convertible loan notes for an additional 8.64% stake in Zamsort.
On August 25, 2015, the company exercised the option by way of a further investment of $600 000 in the No.2 loan notes, which took the total invested by Ortac in Zamsort to $1.2-million and, upon conversion of both loan notes, Ortac's potential shareholding in Zamsort would be 19.35% of the issued share capital of Zamsort.
In August 2016, the miner exercised its right and issued a request to Zamsort to convert the convertible and the no.2 loan notes, into 19.35% of the issued share capital of Zamsort.
Following the conversion of loan notes, Zamsort will remain indebted to Ortac for $371 528, being the remaining balance under the No.2 loan notes excluding accrued interest.