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Highlights
- MTB has executed agreements to extinguish AUD 4.686 million in historical debt owed to current and former directors.
- Under the proposed settlement, 95% of the outstanding debt will be forgiven outright by the creditors.
- The remaining 5% of the debt will be converted into equity, involving the issue of approximately 86.4 million new shares and 4.7 million unlisted options.
- The proposal remains subject to shareholder approval, with a general meeting expected to be held in September 2025.
- MTB shares jumped 75%, closing at AUD 0.007 on 25 July 2025.
Mount Burgess Mining NL (ASX:MTB) saw its share price surge by 75% on 25 July 2025, closing at AUD 0.007 per share, following the announcement of a significant debt reduction agreement.
The company revealed it had entered into Loan Settlement Agreements with several current and former directors to eliminate AUD 4.686 million in legacy debt, a major step in its ongoing strategic turnaround.
The remaining AUD 200,000 is classified as deeply subordinated, carries no interest, and is repayable solely at the discretion of the Board. This debt, previously disclosed in MTB’s past annual reports and audited financial statements, comprises loans provided by current and former directors since 2010.
Key Terms of the Agreement
Under the terms of the agreements, which remain subject to shareholder approval, 95% of the outstanding loans will be forgiven outright, while the remaining 5% will be converted into equity, comprising approximately 86.4 million new shares and 4.7 million unlisted options. Upon completion, these securities will represent around 16.8% of the company’s issued capital on a post-settlement undiluted basis.
Breakdown of Major Settlements
The agreement includes settlements with major stakeholders such as:
- Former Director Nigel Forrester and Jan Forrester, who will see AUD 3.37 million forgiven and around AUD 177,000 converted into equity.
- Exchange Services Ltd (linked to former Director Alfred Stirling), forgiving over AUD 1 million and converting AUD 53,000.
- Current Director Harry Warries, forgiving approximately 57,000 and converting AUD over AUD 3,000 into equity.
- Former Director Chris Campbell-Hicks, forgiving nearly AUD 15,000, converting approximately AUD 837 into equity.
Each option carries a 4–5 year expiry period with exercise prices ranging from AUD 0.005 to AUD 0.0053 per option. The proposal will be presented to shareholders for approval at a general meeting expected in September 2025.
The debt settlement marks a pivotal milestone for MTB, significantly enhancing its financial flexibility and paving the way for growth. With creditor support and a strengthened balance sheet, the company remains committed to advancing exploration initiatives, pursuing new opportunities, and delivering long-term value.
