Caerus Mineral Resources plc has signed a subscription agreement with shareholder EV Metals Group plc (EVM) under which Caerus may need EVM to subscribe up to £625,000 for unsecured convertible loan notes.
USES
The company added that EVM’s holding in Caerus would increase from 16.34% to 29.9% should it require EVM to subscribe for the total amount.
Funds raised from the convertible loan notes, which have a conversion price of 7.5p, will support Caerus’s general working capital and help “accelerate opportunities created through its EVM alliance”.
“As a result of the alliance, the company is in ongoing discussions regarding opportunities to enhance its licence portfolio,” added Caerus in a statement.
“These opportunities are wholly aligned with Caerus’ strategic focus of developing mineral resources that support the clean energy transition.”
RELATED PARTIES
Caerus non-executive directors Russell Thomson is a statutory director of EVM and Dominic Traynor is corporate secretary to EVM.
The company said that neither person formed part of the quorum and did not vote on the proposal to approve the terms of the subscription agreement and the instrument.
“The independent directors of the company have determined that the terms of the proposed transaction are fair and reasonable and in the best interest of its shareholders other than EVM.
“In particular, it was noted that the conversion price of the notes represented a premium to the share price of the company as at the date of this announcement and would provide important funding for the company.”