Newfield substantially strengthens harmony sheet

Newfield Sources has retired around $40 million value of company bond credit card debt and approximately $2.1m of connected accrued fascination for its Tongo diamond mine in Eastern Sierra Leone. Furthermore, the organization elevated $12.5 million through a funds increase with the put together workout noticeably strengthening its stability sheet and lowering lengthy-term bond personal debt to zero.

The equity restructuring and cash increase eliminates the obligation to repay somewhere around $5 million of fascination on an yearly basis and about $15 million for what would have been the remaining lifestyle of the corporate bonds.

Binding agreements with its Australian corporate bondholders and specific previous Australian bondholders will get a whole of $15 million that will be transformed to equity by the issue of 42,857,143 shares at an issue cost of $.35 for each share.

For US bond holders US$7.5 million of corporate bonds will be converted to equity by the challenge of 29,354,208 shares at a selling price of A$.35 per share. A more US$10 million of the US corporate bonds will be repaid in income by means of Newfield’s existing cash reserves.

A agency dedication has been made by a complex trader of A$2.5m by challenge of 7,142,857 shares at an problem price tag of $.35 for every share.

Townshend Money has also stepped up to the plate with a partly underwritten allocation of up to A$10m symbolizing 28571,429 shares at $.35 for each share.

The underwriting arrangement with each other with the agency dedication for $A2.5m are meant to substitute Newfield’s dollars reserves and to repay the US$10m of company bonds.

Outstanding fascination payments of around A$2.1m to company bondholders will also be settled by changing to 24,744,513 choices exercisable at $.50 each which have a two calendar year expression from the date of their issue.

Funds raised is intended to fund the company’s Tongo diamond venture that handles about 134 sq. kilometres in jap Sierra Leone – an place renowned for high high-quality diamonds. To date, 11 diamond bearing kimberlites have been identified at the job, of which only 5 have been integrated into the recent JORC-compliant, 8.3 million carat diamond useful resource estimate.

The Administrators are incredibly delighted with the productive negotiation, led by the Company’s company adviser, Townshend Cash, to capitalise a bulk of its remarkable bond credit card debt and amassed interest. Also, the extra $2.5 million company commitment from a innovative investor, and the $10 million underwriting arrangement, designed as component of the shortfall from the Company’s the latest legal rights difficulty, supplies further more cash to advance the Tongo Mine advancement.

According to Newfield, the fairness reshuffling will allow it to steer clear of shelling out substantial ongoing curiosity in flip bolstering Newfield’s equilibrium sheet significantly and in the long run assistance enhance the company’s means to produce better price to its shareholders.

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