Conroy Gold and Natural Resources PLC (AIM:CGNR, OTC:CGDNF) shares climbed more than 20% after announcing a deal with current and former directors to restructure €3.36 million of liabilities.
The company, in a statement, said the arrangements see the liabilities (accrued fees and emoluments) converted into net smelter royalty entitlements and share options linked to future production.
Under the terms, 20% of the amounts owed will be written off, while the remaining 80% will be repaid through a 2% royalty on sales from future mines at the Orlock Bridge or Skullmartin gold trends. Meanwhile, 7-year share options exercisable at 30p per share are also being issued.
"The agreement reached by the company with past and current directors to link payment of past amounts owed to commercial production and material share price appreciation is anticipated to help the company attract new investment to advance its Discs of Gold project," said chair John Sherman.
"The agreement recognises the value of the work by these directors in discovering two district scale gold trends and license the related targets. It also represents a continuation of their steadfast support for the Company and its successful development."
In London, Conroy shares were up 21.1% changing hands at 6.42p, valuing the business at just over £3 million.