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Guildford completes $65m financing deal

Guildford completes $65m financing deal

Photo by Bloomberg

10th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Coal hopeful Guildford Coal on Friday reported that it had completed a $65-million financing facility with OCP Asia to fund working capital across its Mongolian assets.

Some $10-million of the funding was in exchange for the issue of convertible notes, at a conversion price of A$0.30 a share, which would convert to 35.5-million shares.

A further $55-million was in exchange for the issuance of amortising notes, as well as detachable warrants that equalled 18.5% of the amortising.

Guildford noted that apart from working capital, the funding would also be used to repay existing debts.

In December, Guildford concluded a $22-million funding agreement with Noble Resources International, also reaching an agreement with this company to work together on potential options for the continued development and expansion of the South Gobi region into a major coking coal producing region, with exports to China.

Guildford’s project portfolio contains 2.5-billion tonnes, with projects located in Queensland and Mongolia.

Edited by Creamer Media Reporter

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