Macarthur Minerals Ltd (ASX:MIO) (CVE:MMS) is in a stronger position to complete its Lake Giles Project financing strategy after the early conversion of all outstanding convertible notes 23 months prior to maturity.
This was achieved through the receipt of conversion notices from the three remaining note holders - Glencore PLC (LON:GLEN), Exception Capital LLP and Mr M Denning - to convert all of the outstanding amounts advanced for their subscriptions, totalling 81 notes, for gross proceeds of US$3.25 million into 9,518,237 ordinary shares in the capital of the company.
“Indicates strong investor support”
Macarthur Minerals president and executive chairman Cameron McCall said: “The early conversion of all participating note holders, 23 months prior to maturity, is great news for the company and indicates strong investor support in the continued progress that the company is making to bring its flagship Lake Giles Iron Project into production.”
“The board of Macarthur welcomes Glencore, Exception Capital and Mr Denning as shareholders of the company.
“Glencore also holds a life-of-mine binding offtake agreement with Macarthur for the sale of iron ore to be produced from the Lake Giles Iron Project in the Yilgarn Region of Western Australia from the commencement of commercial production, as announced on March 21, 2019.”
The convertible notes were secured notes and now that they have been converted, the company is in the process of finalising arrangements to extinguish the security held over its Lake Giles iron ore tenements.