Africa-focused miner Shuka Minerals (SKA.L) said Thursday it agreed to assign 400,000 pounds sterling of its outstanding convertible loan plus interest of 19,648 pounds from GMI to RAB Capital.
The assignment will reduce the outstanding GMI loan balance to about 160,000 pounds from 563,000 pounds.
Under the agreement, RAB will be able to convert the loan into up to 10,491,200 new Shuka shares at 0.04 pounds per share. RAB indicated its plan to convert the loan shortly after the assignment.
Upon the completion of the assignment, Shuka will grant RAB warrants to subscribe for a further 10,491,200 new ordinary shares at an exercise price of 0.08 pence per share, exercisable on or before July 20, 2029.