Mineral resources company - Astro Resources NL (ASX: ARO) provided a market update on 12 December 2018. In the market update, the company informed that it has received a final draft of its determination of the stamp duty liability from the Western Australia Office of State Revenue (WA OSR). The final amount that has been assessed is $91,894.80, and WA OSR has indicated that upon assessment any outstanding amount will be subject to interest at the rate of 10.2 percent per annum. The Company has accepted the WA OSR final determination, and it is waiting for the receipt of assessment.
ARO has already made a provision for this stamp duty liability in its books of account for the amount of $94,870, the difference in the amount will be adjusted in the half-year financial report for the six months ending 31 December 2018.
In the market update, the company also informed that it is planning to raise further capital through placement of fully-paid ordinary shares in the issued capital of ARO to fund its business plan. The Company is planning to issue a Prospectus in connection with that placement, and the placement is expected to occur by late December 2018.
The company has also informed that it has drawn around $1.33 million under its existing loan facilities from Gun Capital Management Pty Ltd (GCM) which is due for repayment by 31 October 2019. As at 31 October 2018, there is approximately $450,000 available for further draw-down.
GCM has also given its consent to ARO for equity capital raising to have up to $927,407, and it will not require, accept, demand or take other action to enforce repayment any of its loans from the proceeds of the raising. GCM will also provide support to help the Company in meeting its business plan, and in particular, not demand the repayment of its loans to the Company, subject to Jacob Khouri remaining on the board of the Company.
The company also informed that Messrs Khouri, Fayad and former director, Mr. Michael Povey have all agreed that they will not take payments for their directors’ fees for FY 2018, in cash or otherwise, until a mutually agreeable future date.
Astro Resources has also settled the amount owed to Mr. Povey of $38,500 plus interest of $1,348 calculated at 5.5 percent per annum. To settle the amount, Astro Resources has agreed to take an assignment of a $34,715 loan owing by Mr. Povey to SEK Investments Limited (SEK), a substantial shareholder of ARO, with the effect that Mr. Povey’s debt to SEK is extinguished, and the Company is liable to repay the outstanding amount to SEK.
ARO’s shares traded at $0.003 with a market capitalization of circa $2.66 million as on 12 December 2018 (AEST 2:30 PM).
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