Business
Conversion of Convertible Loan Notes
Conversion of Convertible Loan Notes.
About this update from Altyngold Plc
[{"type":"text","content":"\n \nRNS Number : 5688V Hambledon Mining PLC 16 December 2013 \n \n\n16 December 2013\nHambledon Mining plc(\"Hambledon\" or the \"Company\")\nConversion of Convertible Loan Notes and COO Appointment\nHambledon Mining plc (AIM: HMB), the gold mining and development company, has today issued 583,648,617 new ordinary shares of 0.1 pence each (the \"New Ordinary Shares\") to African Resources Limited (\"African Resources\") following the full conversion of the unsecured convertible loan notes of £17.25 million (plus accrued interest) issued to African Resources as part of the Karasuyskoye Ore Fields transaction (as announced on 4 October 2013) (the \"Convertible Loan Notes\") (the \"Conversion\").\nThe Convertible Loan Notes were issued with a five year term, bore interest at a rate equal to three months LIBOR plus seven per cent. (which accrued daily and was payable on redemption or, in shares, on conversion) and were convertible at a conversion price of 3 pence per share. Accordingly, upon full conversion of the Convertible Loan Notes, 583,648,617 New Ordinary Shares were issued by the Company to African Resources to satisfy the outstanding principle amount of £17.25 million and accrued interest (until midnight on 15 December 2013) of £259,459. The conversion price of 3 pence per share equates to a premium of 31.9 per cent. to the closing price of 2.275 pence on 13 December 2013.\nAfrican Resources' decision to fully convert was based upon, inter alia, discussions with various stakeholders, including the EBRD and investors generally. Shareholder approval was granted at the general meeting of the Company held on 23 October 2013 to permit the issue of the maximum number of new ordinary shares required to satisfy full conversion. \nFollowing the issue of the New Ordinary Shares, African Resources is interested in 1,081,903,593 ordinary shares in the Company, representing approximately 69.2 per cent. of the Company's enlarged issued share capital. The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares and it is expected that admission to trading on AIM will occur at 8.00 a.m. on 20 December 2013. Following admission, the total number of voting rights in the Company's will be 1,563,370,130. \nUpdate on the Karasuyskoye Ore Fields\nThe Convertible Loan Notes were issued to fund the acquisit...