TSX-V- and JSE-listed Buffalo Coal has advised that the convertible loan facility it has in place with Belvedere Resources has been amended to remove the right of Belvedere, as lender, to convert amounts owing thereunder into shares in the capital of Buffalo.
There is currently $27-million outstanding on the convertible loan, together with $270 175 in accrued interest.
The loan was originally convertible by Belvedere into common shares in the capital of Buffalo at a conversion rate of C$0.0469 a common share.
The maturity date of the loan is set for June 30, 2023.
Buffalo in September transferred the loan to Belvedere after buying it originally from private investment fund Resource Capital Fund (RCF). In turn, this followed Belvedere acquiring RCF’s controlling stake in Buffalo in June.
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.
Meanwhile, Buffalo’s wholly-owned subsidiary Buffalo Coal Dundee (BCD) has, together with Belvedere and Investec Bank, entered into an amendment to the tri-partite agreement between the parties entered into on October 5. The amendment allows BCD to repay remaining amounts owing to Investec by January 6, 2023, instead of the original date of November 30.
Belvedere has undertaken to directly or indirectly advance funds to BCD, if it cannot fully meet the monthly capital repayment obligations to Investec.