Forbes closes first tranche of $25m loan
JOHANNESBURG (miningweekly.com) – The first tranche – an amount of $4-million – of a $25-million secured convertible loan facility from Resource Capital Fund (RCF) has closed, TSX- and JSE-listed Forbes & Manhattan Coal said on Thursday.
The South Africa-focused coal producer last month secured a $19-million loan facility, comprising the bridge loan of $4-million and a convertible loan of up to $15-million, and had refinanced an existing $6-million convertible loan facility, to fund the closure of its offices in Canada, for working capital and to improve capital for the company’s KwaZulu-Natal operations.
Forbes, which had embarked on a major management shake-up and rebranding, would use the bridge loan for general working capital at its operations in Dundee, in KwaZulu-Natal, and facilitate the closing of the group’s Toronto, Canada, office.
The now-closed bridge loan would mature on June 30, while the convertible loan, which would close on April 30, was set to mature in June 2017.
This came as Forbes announced its anticipated board changes that formed part of the significant funding package.
As CEO and president, Stephan Theron stepped down, while current chairperson Craig Wiggill assumed an interim role as executive chairperson and CEO until shareholder approval of the RCF convertible loan, at which time current COO Malcolm Campbell would take over as CEO.
Theron, who would also resign his directorship in the company, would remain a special adviser to Forbes.
Bob Francis had been appointed to the board of directors, while John Dreyer assumed the role of lead independent director of Forbes.
Further, VP for finance Sarah Williams had succeeded outgoing CFO Deborah Battiston.
Stan Bharti resigned his directorship and corporate secretary Neil Said would also step down.
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