R3D Resources (ASX:R3D) appoints new chairman, receives loan note to fuel exploration

October 21, 2022 03:29 PM AEDT | By Aditi Sarkar

R3D Resources (ASX:R3D) appoints new chairman, receives loan note to fuel exploration — Image source: © Andreyyalansky19 | Megapixl.com

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Highlights

R3D Resources has appointed Mr Jihad Malaeb as Chairman.

R3D plans to execute an AU$500k loan note from Mr Malaeb on attractive terms.

During the AGM of 2022, the company will seek shareholder approval for the participation of directors in a placement at AU$0.10 to raise AU$330k.

R3D Resources Limited (ASX:R3D), a significant copper-gold explorer and developer, has appointed Mr Jihad Malaeb as Chairman, effective from 20 October 2022. Further, the company plans to implement a AU$500k loan note from Mr Malaeb on attractive terms.

Mr Malaeb is a veteran entrepreneur with experience across several industries, including hospitality and construction. He also has a significant experience in mineral exploration and mining operations as an active investor and company director. Since June 2022, Mr Malaeb has been the director of R3D. Additionally, he is a material shareholder in R3D and has participated in capital raisings completed earlier this year.

Data source: R3D update
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Chairman to provide loan note

Mr Malaeb has agreed to provide AU$500K of working capital to the company in the form of a loan note. Given the current market and economic conditions, the R3D board considers the loan note to be favourable for the company.

At the upcoming 2022 Annual General Meeting (AGM), the company is expecting to seek shareholder approval for the loan note. Subject to approval, it will become a convertible loan note with an AU$0.15 conversion price, signifying an over 85% premium to the closing price on 19 October 2022.

Annual general meeting

The AGM of R3D is scheduled on 29 November 2022. During the AGM, the company will also seek shareholder approval for the participation of directors in a placement. The placement will be at AU$0.10 to raise AU$330k. Director participation in the AU$0.10 placement includes AU$100k from Mr Malaeb (in addition to the loan note) and AU$100K from Stephen Bartrop, the firm's managing director.

Shares of R3D were trading on Friday (21 October, 3:26 PM, AEST) at AU$0.091.

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