This
announcement contains inside information for the purposes of
Article 7 of the UK version of Regulation (EU) No 596/2014 which is
part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
21 January 2025
Nativo Resources
Plc
("Nativo"
or the "Company")
Debt
Restructuring
Further to the RNS announcement dated
19 December 2023, Nativo Resources plc (LON:NTVO), which has
interests in gold mines in Peru, is pleased to announce that it has
entered into an agreement with Spartan Fund Limited (SAC) (the
"Lenders") to cancel the Company's £1.0 million loan facility (the
"Loan") with the Lenders. In doing so, the Company has removed a
substantial repayment pressure which would have fallen due next
year, at a time when Nativo expects to be directing cash flows from
gold mining activities in Peru into the planned gold processing
plant and tailings cleaning activities.
The outstanding capital on the Loan will be
rolled into a new convertible loan note ("CLN"). The details of the
CLN are as follows:
· Principal amount:
£605,250
· Maturity: January
2028
· Coupon: Until converted
fully, the Loan has a coupon of 5% with interest payable in cash,
quarterly in arrears
· Conversion terms: Lender may
elect to convert all or part of the principal at any time into
Ordinary Shares in the Company at the conversion price which will
be set at a premium of 20% over the average share price of the last
5 trading days prior to the date of the election to
convert
Interest accrued on the Loan up until 31
December 2024, being £305,944, will be converted into Ordinary
Shares in the Company ("Shares") at a conversion price of 0.0024p,
which represents a premium of 20% to the volume weighted average
mid-price of the 5 trading days to 16 January 2025. Accordingly,
12,747,666,666 Shares will be issued to the Lenders, representing
13.20% of the enlarged issued share capital of the
Company.
Admission and
Total Voting Rights
Application will be made to the London Stock
Exchange for admission of the Shares to trading on AIM
("Admission"). It is expected that Admission will become effective
and dealings will commence at 8.00 a.m. on or around 27 January
2025. The Shares will be issued fully paid and will rank pari passu
in all respects with the Company's existing Ordinary
Shares.
Following Admission, the total number of
Ordinary Shares in the capital of the Company in issue will be
74,462,211,686 with voting rights. This figure may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the Company's share capital pursuant
to (i) the Company's Articles, (ii) the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules and/or (iii)
the AIM Rules for Companies issued by the London Stock Exchange plc
as amended from time to time.
Stephen
Birrell, Chief Executive Officer of Nativo,
commented:
"This is an
important development in improving the Company's balance sheet and
in doing so bringing on a supportive new shareholder. The
willingness of the Lender to switch into a convertible loan format
reflects their confidence in our business plan."
For
further information please contact:
|
Nativo
Resources
Stephen Birrell, Chief Executive
Officer
|
Via Vigo Consulting
nativo@vigoconsulting.com
|
|
|
|
|
Zeus
(Nominated Adviser and Joint Broker)
James Joyce
James Bavister
|
Tel: +44 (0)20 3829 5000
|
|
|
|
|
Peterhouse
Capital limited (Joint Broker)
Duncan Vasey
Lucy Williams
Rose Greensmith
|
Tel: +44 (0)20 7469 0930
|
|
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Vigo
Consulting (Investor Relations)
Ben Simons
Peter Jacob
Anna Sutton
|
Tel: +44 (0)20 7390 0234
nativo@vigoconsulting.com
|
About Nativo
Resources plc
Nativo has interests in gold mining and
exploration projects in Peru. Through a 50:50 joint venture
established in July 2024 with an experienced local partner, Nativo
secured an opportunity to scale operations at the Tesoro Gold
Concession, owning 50% of the production and resources, targeting
early cash flow generation in Q4 2024. In December 2024, Nativo
agreed to acquire directly a 100% interest in the Morrocota Gold
Mine, proximal to the Tesoro Gold Concession. Production from
Morrocota is anticipated to commence by the end of Q2
2025.
Longer-term, the Company plans to establish its
own gold ore processing plant to retain a higher margin from
production at its mines.
In addition to primary gold mining projects,
the Company also holds the Ana Lucia Polymetallic concession and is
investigating low capex strategies to appraise and exploit tailings
deposits to recover gold.
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LinkedIn: https://uk.linkedin.com/company/nativoresources-plc
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