Nativo agrees debt restructure with Spartan Fund

(Sharecast News) - Nativo Resources announced a debt restructuring agreement with Spartan Fund on Tuesday, cancelling its existing £1m loan facility and replacing it with a new convertible loan note (CLN). The AIM-traded firm said the restructuring aimed to alleviate repayment pressure ahead of the company's planned investment in a gold processing plant and tailings cleaning activities in Peru.

Under the terms of the CLN, the outstanding loan capital of £0.61m would mature in January 2028, and would carry a 5% coupon with interest payable quarterly in cash until fully converted.

The lenders would have the option to convert all or part of the principal into ordinary shares at a 20% premium to the average share price over the five trading days preceding the conversion election.

In addition, accrued interest of £0.31m on the original loan up to 31 December 2024 would be converted into 12,747,666,666 shares at a price of 0.0024p each, representing a 20% premium to the volume-weighted average mid-price over the five trading days to 16 January.

Following the issue, the lenders would hold a 13.2% stake in the enlarged share capital of the company.

Nativo said it would apply for the admission of the new shares to trading on AIM, with dealings expected to start at 0800 GMT on 27 January.

"This is an important development in improving the company's balance sheet and in doing so bringing on a supportive new shareholder," said chief executive officer Stephen Birrell.

"The willingness of the lender to switch into a convertible loan format reflects their confidence in our business plan."

At 1414 GMT, shares in Nativo Resources were down 0.48% at 0.002p.

Reporting by Josh White for Sharecast.com.