Black Mountain Resources Ltd. entered a restructure heads of agreement with its major lender, Richmond Partners Masters Ltd., and the company's acting CEO Bronwyn Barnes stepped down from the role.
Under the restructuring proposal, the company will dispose of its interest in the Namekara vermiculite mine in Uganda against retirement of about A$5.5 million of debt, cutting the company's debt levels to about A$600,000.
Black Mountain will retain a 75% interest in its existing Busumbu phosphate project in Uganda and all other non-vermiculite minerals held by its subsidiary, Namekara Mining Co. Ltd.
The company will also renegotiate the existing agreement with Investmet Ltd. for equity funding to start a phosphate, copper and rare earths exploration program on the Namekara Mining tenements.
Black Mountain will also look at other forms of financing to ensure the continuity of its exploration programs.
Meanwhile, Richmond's nominee on the company's board, Luca Bechis, will step down as part of the transaction.
As a replacement, Sam Jarvis will join the board as a nonexecutive director.