Business
Subscription for ?250,000 Cnv Ln Notes in Agricola
Subscription for ?250,000 Cnv Ln Notes in Agricola.
About this update from Beowulf Mining Plc
[{"type":"text","content":"\n \nRNS Number : 9144I Beowulf Mining PLC 22 June 2011 \n \n\n22 June 2011\n \nBeowulf Mining Plc\n(\"Beowulf\" or the \"Company\")\n \nSubscription for £250,000 Secured Convertible Loan Notes 2017 \nin Agricola Resources Plc\n \nBeowulf (AIM: BEM; Aktietorget: BEO), the AIM and Aktietorget traded mineral exploration company which owns several exploration projects in Sweden, announces that yesterday it agreed to subscribe for £250,000 of additional secured convertible loan notes in PLUS quoted Agricola Resources plc (\"Agricola\") (the \"Convertible Loan Notes\"). The subscription amount is to be satisfied as to £182,748 through the rolling over of certain existing unsecured loans due to Beowulf and the balance of £67,252 in cash. \n \nThe existing loans being replaced were advanced on an ad hoc basis between May 2010 and June 2011 and constituted a related party transaction as disclosed in Beowulf's 2010 Annual Report and Financial Statements. The Company has restructured the existing unsecured loans to ensure that the financing arrangements with Agricola are fair and reasonable as far as Beowulf's shareholders are concerned.\n \nThe Convertible Loan Notes are interest bearing at a rate of 7 per cent. per annum above the Bank of England's base rate from time to time and interest will be compounded quarterly on the principal loan amount outstanding.\n \nThe Convertible Loan Notes are secured against all of Agricola's assets, ranking behind Beowulf's existing legal charge in respect of Agricola's Morocco joint venture project, and are repayable on 30 June 2017 or, at Beowulf's option, immediately upon a fundraising of more than £400,000 being completed by Agricola, or any time thereafter. At Agricola's option, the Convertible Loan Notes are redeemable early without penalty on 30 June 2012 or at six monthly intervals thereafter. Beowulf is entitled at its sole discretion to convert all or part of the principal loan amount advanced into new ordinary shares in Agricola at a conversion price of 1 pence par value per ordinary share at any time. The notes are transferable subject to certain limited restrictions.\n \nIn addition, Beowulf has been granted warrants to subscribe for up to 21,000,000 additional new ordinary shares in Agricola at an exercise price of 1 pence per new Agricola or...