Panthera Resources PLC (AIM:PAT) has arranged for the issue of unsecured convertible loan notes (CLN) to raise approximately US$250,000 which eventually could lead to the separation of its West African gold assets.
William Potts and Juan Mahler Llado, described as sophisticated investors in the AIM market and the natural resources sector are funding the loans.
The CLN proceeds will also serve as a first step towards a potential broader strategic restructuring of the West African gold business, said Panthera.
An exclusivity agreement has been signed with the CLN participants to move forward with discussions about any such separation as well as the financing of any such new corporate vehicle.
If this moves ahead, the CLN will be entirely repaid by this new corporate vehicle and not Panthera.
Alternatively, if the CLNs are converted pursuant to the terms described below, and prior to the restructuring of its West African gold assets, it is anticipated that the new corporate vehicle will make an additional cash payment of US$250,000 to Panthera.
It is also anticipated that Panthera will hold an equity interest in the new corporate vehicle alongside other new investors, with Panthera's ultimate equity interest still to be determined.