Business
Extension of AUO CLN
Extension of AUO CLN.
About this update from Shuka Minerals Plc
[{"type":"text","content":"\n\n4 April 2025\nShuka Minerals Plc\n(\"Shuka\" or the \"Company\")\nExtension of CLN Availability Period and Redemption Date\nRelated Party Transaction\nShuka Minerals Plc (AIM: SKA), an African focused mine operator and developer, is pleased to provide an update to the £2,000,000 unsecured convertible note instrument (\"CLN\") entered into on 24 May 2024 with AUO Commercial Brokerage LLC (\"AUO\").\nThe availability period for the entire principal amount of the CLNs has been extended to 31 March 2026 and the redemption date has been extended by twelve months to 31 March 2027 (the \"CLN Extension\"). All other terms of the CLN remain unchanged.\nThe CLN Extension provides comfort regarding funding going forward as the Company progresses towards completion of the Kabwe Mine acquisition, which, as per the announcement on 14 March 2025, the date for which has been extended by 90 days to 11 June 2025.\nAUO is a Dubai based entity with Quinton Van de Burgh as the majority shareholder.\nKey Terms of the extended CLN:\n· The availability period for the drawdown by the Company has been extended from 31 March 2025 to 31 March 2026.\n· The redemption date has been extended by 12 months whereby the CLNs have a final redemption date of 31 March 2027.\n· The full £2m under the CLN remains available, which includes the initial £500,000 drawdown notice submitted by the Company as announced to the market on 20 August 2024. As previously announced, AUO has yet to provide funding pursuant to this drawdown request.\n· The Notes have a 3% annual coupon, redeemable in cash or Company shares at the election of the Noteholder.\n· The Notes have a conversion price of 15 pence per share, representing a substantial premium to the current share price.\n· Conversion restrictions are in place to ensure compliance with Rule 9 of the City Code on Takeovers and Mergers.\n· The principal amount of the Notes is repayable immediately following an event of default, with accrued interest convertible into Company shares.\n· The Notes may not otherwise be redeemed by the Company in advance of the final redemption date of 31 March 2027.\nThe Company continues to assess other non-dilutive financing options which may sit along...