Buffalo confirms Investec go-ahead for loan transfer to new owner Belvedere
JSE- and TSX-V-listed Buffalo Coal is in the process of transferring a $27-million loan purchased from private investment fund Resource Capital Fund (RCF) to new owner Belvedere Resources.
This follows after Belvedere acquired RCF’s controlling stake in Buffalo in June, which involves Belvedere assuming the $27-million convertible loan.
The loan, with a maturity date of June 30, 2023, is optionally convertible by Belvedere into common shares in the capital of Buffalo at the conversion rate of C$0.0469 a common share.
Belvedere was required to obtain written consent from Investec Bank to assign the loan in Belvedere’s favour, which was the last pending and now met condition to the deal.
Belvedere paid $540 000 for the 347-million Buffalo shares and $2-million for the assumption of the loan, which was paid to RCF.
The shares represent 82% of the issued and outstanding share capital of Buffalo.
Buffalo owns a majority interest in two South African coal mines.
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