Regency Mines PLC raised £676,000 through the issue of convertible notes and also partially repaid and restructured a US$1.6 million loan note.
Chairman Andrew Bell said the company shifted the main burden of its repayments into 2020, in part to reduce short-term uncertainty.
Regency Mines said Jan. 14 that it will focus on increasing cash flows from coal operations in 2019. The company has a 47% interest in Mining Equity Trust LLC, a metallurgical coal joint venture with privately held Legacy Hill Resources Ltd., which operates the Omega mine in Virginia. It also has a 50% interest in the Mambare nickel joint venture in Papua New Guinea.
The convertible notes will bear interest at 12.5% annually, will be issued at par and are convertible at 0.42 pence per share until May 30, 2020, with the company noting it may issue up to £1.1 million worth of notes.
Each £1,000 note is convertible into 238,095 shares and comes with 119,047 warrants, exercisable at 0.6 pence per share until May 31, 2021.
Regency Mines also said it plans to make a US$580,000 repayment related to the loan note, with US$500,000 of that amount to subsequently be subscribed by its lenders for 395 of the first tranche of convertible notes.
It will also make a US$160,000 repayment from proceeds of any third party financing, including any future tranches of convertible notes.
Under the related mid-2018 agreement, the loan agreement could be extended by six months for a US$80,000 fee. That extension fee and US$20,000 of a US$156,000 restructuring fee became immediately repayable, with the company's lenders subscribing for 22,571,428 shares at 0.35 pence apiece.
The rest of the restructuring fee is payable at maturity of the loan, which was extended to Feb. 28, 2020, with an annual 12% interest rate.
Regency Mines will also make monthly US$50,000 payments from May 2019 to February 2020 and will apply a third of any financing exceeding £200,000 to the loan while it remains outstanding.