REG - Nativo Resources Plc - Debt Restructuring

Nativo ResourcesAnnouncement

21/01/2025 07:00

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RNS Number : 0979U  Nativo Resources Plc  21 January 2025

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

21 January 2025

 

Nativo Resources Plc

("Nativo" or the "Company")

 

Debt Restructuring

Further to the RNS announcement dated 19 December 2023, Nativo Resources plc
(LON:NTVO), which has interests in gold mines in Peru, is pleased to announce
that it has entered into an agreement with Spartan Fund Limited (SAC) (the
"Lenders") to cancel the Company's £1.0 million loan facility (the "Loan")
with the Lenders. In doing so, the Company has removed a substantial repayment
pressure which would have fallen due next year, at a time when Nativo expects
to be directing cash flows from gold mining activities in Peru into the
planned gold processing plant and tailings cleaning activities.

The outstanding capital on the Loan will be rolled into a new convertible loan
note ("CLN"). The details of the CLN are as follows:

·    Principal amount: £605,250

·    Maturity: January 2028

·    Coupon: Until converted fully, the Loan has a coupon of 5% with
interest payable in cash, quarterly in arrears

·    Conversion terms: Lender may elect to convert all or part of the
principal at any time into Ordinary Shares in the Company at the conversion
price which will be set at a premium of 20% over the average share price of
the last 5 trading days prior to the date of the election to convert

Interest accrued on the Loan up until 31 December 2024, being £305,944, will
be converted into Ordinary Shares in the Company ("Shares") at a conversion
price of 0.0024p, which represents a premium of 20% to the volume weighted
average mid-price of the 5 trading days to 16 January 2025. Accordingly,
12,747,666,666 Shares will be issued to the Lenders, representing 13.20% of
the enlarged issued share capital of the Company.

Admission and Total Voting Rights

Application will be made to the London Stock Exchange for admission of the
Shares to trading on AIM ("Admission"). It is expected that Admission will
become effective and dealings will commence at 8.00 a.m. on or around 27
January 2025. The Shares will be issued fully paid and will rank pari passu in
all respects with the Company's existing Ordinary Shares.

Following Admission, the total number of Ordinary Shares in the capital of the
Company in issue will be 74,462,211,686 with voting rights. This figure may be
used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change
to their interest in, the Company's share capital pursuant to (i) the
Company's Articles, (ii) the Financial Conduct Authority's Disclosure Guidance
and Transparency Rules and/or (iii) the AIM Rules for Companies issued by the
London Stock Exchange plc as amended from time to time.

Stephen Birrell, Chief Executive Officer of Nativo, commented:

"This is an important development in improving the Company's balance sheet and
in doing so bringing on a supportive new shareholder. The willingness of the
Lender to switch into a convertible loan format reflects their confidence in
our business plan."

For further information please contact:

 

 Nativo Resources                           Via Vigo Consulting

 Stephen Birrell, Chief Executive Officer   nativo@vigoconsulting.com

 Zeus (Nominated Adviser and Joint Broker)  Tel: +44 (0)20 3829 5000

 James Joyce

 James Bavister

 Peterhouse Capital limited (Joint Broker)  Tel: +44 (0)20 7469 0930

 Duncan Vasey

 Lucy Williams

Rose Greensmith

 Vigo Consulting (Investor Relations)       Tel: +44 (0)20 7390 0234

 Ben Simons                                 nativo@vigoconsulting.com (about%3Ablank)

 Peter Jacob

Anna Sutton

 

About Nativo Resources plc

 

Nativo has interests in gold mining and exploration projects in Peru. Through
a 50:50 joint venture established in July 2024 with an experienced local
partner, Nativo secured an opportunity to scale operations at the Tesoro Gold
Concession, owning 50% of the production and resources, targeting early cash
flow generation in Q4 2024. In December 2024, Nativo agreed to acquire
directly a 100% interest in the Morrocota Gold Mine, proximal to the Tesoro
Gold Concession. Production from Morrocota is anticipated to commence by the
end of Q2 2025.

 

Longer-term, the Company plans to establish its own gold ore processing plant
to retain a higher margin from production at its mines.

 

In addition to primary gold mining projects, the Company also holds the Ana
Lucia Polymetallic concession and is investigating low capex strategies to
appraise and exploit tailings deposits to recover gold.

 

Follow us on social media:

 

LinkedIn: https://uk.linkedin.com/company/nativoresources-plc
(https://uk.linkedin.com/company/nativoresources-plc)

X (Twitter): https://x.com/nativoresources (https://x.com/nativoresources)

 

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