February 14, 2019
Moreton Resources announced on Thursday it had secured an $8.5 million refinancing agreement with First Samuel Limited which will run until April 2022.
First Samuel had previously funded Moreton to the tune of $7.5 million, available in part as a short-term loan, repayable on April 1, and as a debenture secured over company assets.
However, in an announcement to the ASX, Moreton said this $7.5 million had now been restructured into a new facility, broken into three tranches.
“In addition to this, the company has also negotiated an extra $1 million in funding which is expected to bring the company into commissioning and operations at its fully owned subsidiary of the Granite Belt Project, under the MRV Metals Pty Ltd banner,” the statement said.
“This debt will be payable under commercial terms at 12 per cent interest.
“First Samuel Limited has the option to convert up to 50 per cent of that interest into equity, on a month-by-month basis at an agreed $0.007.”
Moreton shares were trading at 0.007 on Wednesday, up from 0.005 on February 1 but down from 0.008 on December 24.
The ASX statement said Moreton had also agreed the debt would be repaid via a minimum of 50 per cent of the free cash flow per month, after all total company operating expenses.
Moreton said the partnership with First Samuel Limited would not only support the commissioning and operations at the company’s Granite Belt silver project, but would also support its advancement plans across its other subsidiaries, including MRV Tarong Basin Coal Pty Ltd, the arm proposing to build an open-cut coal mine near Kingaroy.