Business
Creditor and Cost Reductions & Financial Update
Creditor and Cost Reductions & Financial Update.
About this update from Nativo Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7130X Independent Resources PLC 10 May 2016 \n\nFOR IMMEDIATE RELEASE\n \n10 May 2016\n \nIndependent Resources plc\n(\"IRG\" or the \"Company\")\n \nCreditor and cost reduction arrangements\nFinancial update\nUpdate on East Ghazalat\n \nIRG announces a reduction of c.£500,000 in indebtedness and puts in place plans to substantially reduce holding company cash outgoings to c.£700,000 over next 12 months\n \nKey points:\n \n· A £297,989 reduction in trade creditors through the issue to certain such creditors of 245,788,895 new ordinary shares of 0.01p each in the Company (\"Shares\") at prices of 0.1p and 0.25p per Share \n \n· A further c.£202,000 debt reduction, through the Company's directors (\"Directors\") accepting, in principle, payment in Shares for past services, at a price yet to be agreed, but which is intended to be at a significant premium to the Company's pre-announcement share price of 0.085 pence per Share; and\n \n· A planned reduction in the Company's annual cash costs to c.£700,000 for the twelve months commencing 1 May 2016 with a plan to reduce ongoing costs to £50,000 per month thereafter.\n \nThe issue prices of 0.1p and 0.25p per Share represents premia of 17.6 per cent. and 194.1 per cent. respectively to the Company's closing mid-price of 0.085 pence on 9 May 2016, being the latest practicable business day prior to this announcement.\n \nThe Board of Independent Resources PLC (\"the Company\" or \"IRG\") has entered into arrangements which will reduce the Company's existing trade creditors to approximately £500,000. The Company is progressing debt reduction discussions with other trade creditors and will update the market as and when further progress is made.\n \nReduction in creditors\n \nOn 8 April 2016, when the Board announced the proposals to be made to shareholders at the recent general meeting, it explained that in order to cut cash expenditure as far as possible, it intended where possible to settle obligations of some existing creditors in equity or equity related instruments, thereby significantly reducing the cash burn of the Group.\n \nThe arrangements agreed with creditors comprise:\n \n·  ...