Tietto Minerals (ASX:TIE) reports entities that provided loans totalling US$8 million to the company earlier this year have elected to convert this debt into ordinary shares in Tietto.
Touted as West Africa’s newest unhedged gold producer, the $424.13 million market capitalisation company says debt will convert to shares at a VWAP-determined share price of about $0.34 per share rather than cash repayment, in accordance with the loan terms announced 30 January 2023.
Tietto’s share price is today (17 October 2023) trading at $0.397.
The conversion reduces the company’s debt by more than 30% to US$18.2 million, being a secured facility with Coris Bank, which was reduced to US$18.2 million following a principal repayment of more than US$6.25 million in August 2023.
The US$8M loans were provided to support Tietto’s APG Heap Leach Study by entities affiliated with two unrelated, longstanding high-net-worth shareholders of the company and carried an interest rate of 8% per annum.
Tietto’s unaudited closing cash and bullion balance increased to A$45.3 million as of 30 September 2023. The company reports cash and bullion balances (before debt repayments) increased by a cumulative A$18.3 million in the September quarter.
Write to Adam Orlando at Mining.com.au
Images: Tietto
