On 5 April 2018, Australian mining company Vango Mining Ltd (Vango) announced plans to issue company shares at 4.5 cps (9 537 849) and 6.0 cps (83 275 167) to the total value of AUS$5 425 713 to holders of debt in the company, in order to retire a substantial amount of unsecured debt from its balance sheet. A convertible note to the value AUS$2 500 000 was also proposed to be issued to convert the remaining unsecured debt into a convertible security.
According to Vango, the conversion of this debt is a core priority for the company and will deliver a stronger capital position and clean balance sheet as it seeks to advance the development of the Plutonic Dome project. The debt holders have reportedly verbally indicated their willingness to enter into a voluntary escrow agreements on their issued equity for a period of 6 months.
In addition, subject to the ASX Listing Rules and Corporations Act 2001 (Cth) including company members’ approval, the company announced “the issue of the company’s ordinary fully paid shares… to the company’s directors…by issue and allotment of 30 000 000 company ordinary fully-paid shares at AUS$0.06 each (AUS$1 800 000)” in accordance with Vango’s employee share plan.
Vango has decided not to issue 30 000 000 company shares to the company’s Directors, nor proceed to request members’ approval.
The company has lodged a final draft notice of general meeting of the company’s members with ASX in accordance with ASX Listing Rule 15.1.4, to apply for an ASX “Notice of No Objection” in accordance with ASX Listing Rule 15.1.
The company is required to obtain approval of the final draft notice of general meeting from the Australian Securities and Investments Commission (ASIC).
The general meeting of the company’s members requesting approval of the proposed issue of remaining securities is anticipated to be held approximately one month following the company securing final ASX and ASIC approvals.
Read the article online at: https://www.globalminingreview.com/finance-business/04072018/vango-provides-update-on-proposed-debt-to-equity-conversion/