Overview of Amendments#
Andrada Mining Limited has announced changes to its convertible loan notes, which were initially issued on July 18, 2023. These amendments were disclosed in a press release on Tuesday.
Details of the Loan Notes#
The company originally issued 77 unsecured loan notes worth £100,000 each, raising a total of £7.7 million. The recent amendments extend the maturity date of these notes from July 20, 2026, to July 20, 2027. Additionally, the conversion price has been revised from 9.45 pence to 5.00 pence per share. This new price is 25% higher than the closing share price of 4.00 pence and 37% above the 30-day average price of 3.66 pence as of Monday.
Interest and Redemption Options#
The loan notes carry an interest rate of 12% per year. Andrada Mining retains the option to redeem the notes early by paying a 20% premium on the value of the notes being redeemed, along with any outstanding interest.
New Warrant Instrument#
The company has also created a new warrant instrument, which includes 15,400,000 warrants. Each warrant allows the holder to subscribe for one ordinary share at a price of 5 pence, and these can be exercised until April 27, 2027. The original warrants, which had a higher exercise price of 9.45 pence, expired without being used.
Shareholder Impact#
The Orange Trust, based in New York and holding 15.72% of Andrada’s shares, owns 40 loan notes valued at £4 million and will receive warrants for 8,000,000 ordinary shares. The company’s directors believe that these transaction terms are fair and reasonable for shareholders, having consulted with their adviser, Zeus Capital Limited. CEO Anthony Viljoen noted that these amendments will help free up capital to support the company’s growth strategy.
Andrada Mining is focused on tin production and holds significant mining and exploration assets in Namibia.