Keras Resources repays loan note

Keras Resources announced on Friday that it has repaid the loan note in the principal amount of £563,889, as detailed in an announcement it made on 1 February 2016.

The AIM-traded company said of the total outstanding balance of £609,000 - including interest of £45,111 - £239,700 has been repaid in cash and the remaining balance of £369,300 will be converted into ordinary shares of 0.1p each in the company.

It said the price of the conversion has been set at 0.37p per ordinary share, which will result in a total of 99,810,827 shares being issued to third parties and two directors of the company in two tranches, as part of the loan is held by entities that are controlled by Dave Reeves and Peter Hepburn-Brown.

The first tranche of 55,200,000 loan conversion shares was being issued immediately.

It said the remainder of the loan note is held by an entity controlled by Dave Reeves, and 44,610,827 loan conversion shares will be issued to that entity as part of a second tranche following the company's AGM on 11 February, assuming the passage of resolutions to increase the company's share authorities.

Keras said it plans to settle additional outstanding liabilities to certain directors and members of the management team via the issue of additional ordinary shares following the AGM.

“The repayment of the loan note is the first step in cleaning up our balance sheet and repositioning itself as a debt free mining company with some exciting gold and manganese deposits,” said managing director Dave Reeves.

“This process will continue with the ASX listing a key component of the payback of acquisition facility repayment.

“I would like to thank Peter and other long term supporters, for this vote of confidence in the company's growth prospects.”