LONDON - Shuka Minerals Plc (AIM: SKA), an African mine operator, announced Monday an extension to the terms of its £2 million convertible note instrument (CLN) with AUO Commercial Brokerage LLC. The availability period for drawing down the principal amount has been extended to March 31, 2026, and the redemption date is now set for March 31, 2027.
The CLN, initially entered into on May 24, 2024, remains unchanged in other respects. This extension comes as Shuka progresses towards the acquisition of the Kabwe Mine, with the completion date now extended to June 11, 2025.
AUO, a Dubai-based entity with Quinton Van de Burgh as the majority shareholder, has yet to provide funding pursuant to the initial drawdown notice of £500,000 issued by Shuka on August 20, 2024. The notes carry a 3% annual coupon, with the option for repayment in cash or company shares at the holder’s discretion, and a conversion price set at 15 pence per share.
The extension is considered a related party transaction under the AIM Rules for Companies due to Mr. Van de Burgh’s board role and association with AUO. However, the directors of Shuka, excluding Mr. Van de Burgh, have deemed the terms of the CLN extension fair and reasonable for shareholders after consultation with their Nominated Adviser, Strand Hanson Limited.
CEO Richard Lloyd expressed confidence in AUO’s continued financial support and alignment with Shuka’s growth ambitions. The company is also exploring other non-dilutive financing options to complement the CLN.
This announcement is based on a press release statement and contains inside information under the Market Abuse Regulation as part of UK domestic law.
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