Richland Resources extends maturity date on loan facility

Australian sapphire producer and gemstones developer Richland Resources has secured an extension of its £400,000 secured convertible loan facility.

The AIM-listed company said on Wednesday that it has has agreed and signed a second addendum to its pre-existing convertible loan facility to extend the facility's maturity date from the end of December 2018 to 28 February 2019, for no additional consideration, and all all other terms and conditions unchanged.

Richland also provided a strategic update regarding its Capricorn sapphire mine. The group had said back in September that it was engaged in discussions with potential strategic investors to procure sufficient funding to enable the recommencement of production at the mine or, alternatively, was seeking to conclude ongoing negotiations with different parties in relation to the potential sale of all or a part of the mine.

"The company is continuing to pursue this stated strategy and remains in discussions with one party, in particular, with regards to the potential sale of the entire Capricorn sapphire project," it said.

"However, there can be no guarantee that the company will be able to either secure the requisite funding to be able to re-commence operations or conclude discussions with regard to the potential disposal of Capricorn sapphire."

At 1320 GMT, the shares were down 1.7% at 0.12p.