Business
Conversion of Convertible Loan Notes
Conversion of Convertible Loan Notes.
About this update from Arc Minerals Limited
[{"type":"text","content":"\n\n \n Ortac Resources Limited 14 June 2017 \n\nOrtac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration\n \n14 June 2017\nORTAC RESOURCES LTD \n(\"ORTAC\" OR THE \"COMPANY\")\n \nConversion of Convertible Loan Notes into equity of Zamsort Limited \n \nOrtac Resources Ltd, the AIM listed mineral exploration company operating in Europe and Africa reports that is has agreed to convert the Secured Convertible Loan Note (\"the Convertible\") and to partially convert the Call Option Agreement (\"the Option\") into an equity position of 14% in Zamsort Limited (\"Zamsort\"), with the remaining balance on the loan notes being extended to the 31st December 2018.\nVassilios Carellas, Ortac's CEO, commented: \"We are pleased to be converting the majority of the loan notes we hold in Zamsort into equity and look forward to helping Zamsort transition from a license holder to explorer and producer.\"\nBackground to the Convertible Loan Notes\nOn 30th March 2015 Ortac subscribed for US$600,000 of secured convertible loan notes, convertible into a 10.71% stake in Zamsort and entered into the Option entitling Ortac to subscribe for further US$600,000 secured convertible loan notes (the \"No.2 Loan Notes\") for an additional 8.64% stake in Zamsort.\nOn the 25th August 2015 the Company exercised the Option by way of a further investment of US$600,000 in the No.2 Loan Notes, which took the total invested by Ortac in Zamsort to US$1.2 million and, upon conversion of both loan notes, Ortac's potential shareholding in Zamsort would be 19.35% of the issued share capital of Zamsort. \nOn 9th August 2016 the Company announced that it had exercised its right and issued a request to Zamsort to convert the Convertible and the No.2 Loan Notes, into 19.35% of the issued share capital of Zamsort.\nAt the time Zamsort advised the Company that it may wish to make changes to its share capital structure in order to facilitate further funding. Ortac advised Zamsort that it would be cooperative should a reorganisation be of benefit to the financing of Zamsort, and in the best interests of Ortac and its shareholders, if Ortac's Convertible was converted into equity. \nThe Company has today agreed that it will convert loan notes to the value of USD $828,472, which will result in Ortac being issued 2,...