Moreton Resources reveals plan for $7.5M debt
THE mining company investing in the proposed Kingaroy coal mine has revealed how they will manage their debt.
In a statement released to the ASX on February 14, Moreton Resources Limited said a recent refinancing of their major debt agreements has been secured through to 2022.
This has been through ongoing support with long-time financing partner First Samuel Limited, based on their renewal plans and advancement activities.
The decision was made after a lengthy negotiation considering the current make-up of the company board, the position of the company and its prospects.
"FSL has agreed to a total restructuring of their debt totalling $7,500,000 into a new facility which is broken into three tranches," they said.
Moreton Resources has also negotiated an additional $1,000,000 in funding which is expected to bring the company into commissioning and operations at its fully owned subsidiary of the Granite Belt Project.
This debt will be payable under commercial terms at 12 per cent interest.
First Samuel Limited will have 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 which has been pre-set.
"The total term of the debt agreement runs to April 2022 and additional payments are at the discretion of the company to reduce this debt," they said.
Moreton Resources has also agreed the debt will be repaid via a minimum of 50 per cent of the free cash flow per month, after all operating expenses.