MACA Limited Waives Off Beadell Loan Terms With Great Panther

  • Nov 20, 2018 AEDT
  • Team Kalkine
MACA Limited Waives Off Beadell Loan Terms With Great Panther

MACA Limited (ASX: MLD) today announced that the company has reached an agreement with dually listed Great Panther Silver Limited in connection with repayment of $54.7 million loan to MACA due from Beadell Resources which is to be acquired by Great Panther.

In the market release dated 22 June 2018, MACA announced the termination of mining contract with Beadell Resources leading to which the company entered into a loan agreement for balance of payments. 

Under the agreement, all amounts due to MACA by Beadell including unbilled accruals, termination costs, loans, unpaid invoices, demobilization and fleet purchase costs were consolidated into one aggregate loan amount that stood at $54.7 million. As per the original terms of loan agreement, initial payment of $3 million was fixed due following closing of the financing, a further payment of $3 million on 31 March 2019 and then monthly payments of $1.5 million commencing 1 July 2019 was determined until the loan is repaid or 30 June 2022 whichever is earlier.

Later, on 24th September 2018, Toronto and New York’s exchange listed precious metal company, Great Panther, announced the arrangement to acquire 100% shares in Beadell. To safeguard the terms of loans at the phase of change in Beadell’s control, it was agreed that the outstanding receivable will remain due and payable to MACA in the absence of its consent.

MACA has today agreed to waive off the change of control clause, agreed in original loan agreement. The change relates to the following amendments effective on the completion of Beadell’s acquisition by Great Panther. The key highlights of the amendments include:

  • The initial payment of $3 million and the subsequent two $1.5 million payments will be guaranteed by Great Panther.
  • MACA Limited will have the right to convert a total of $15 million of the balance loan outstanding into the shares in Great Panther, subject to certain conditions.
  • The provision to provide net proceeds of 30% from any debt or equity financing has been reduced to 10%.
  • MACA to receive 10% of the funds of any Great Panther debt or equity issuances, and 20% of the funds in the case of exercise of existing warrants to be applied against the outstanding balance of the receivable.

Under the terms agreed, and assuming completion of the Scheme, the current total amount owing is expected to reduce from A$54.7M to A$23.2M within 12 months of the Completion Date.

With this news, MACA’s share price plunged 5.408% to trade at $0.927 on 20 November 2018 (2:04 PM AEST).


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK