Anglesey Mining PLC (AIM:AYM) shares got a big lift on Friday, more than doubling in value, after unveiling a series of measures designed to strengthen its financial position, including a debt settlement agreement, asset disposals, a new investment by Energold Minerals and additions to its board.
The company, in a statement, announced an agreement (a binding letter of intent) with Energold to restructure its balance sheet and support future work at the Parys Mountain project.
Anglesey said it will eliminate about £4 million of debt by transferring its holdings in the Grängesberg Iron AB and Labrador Iron Mines Holdings assets, and, also, Energold will invest £350,000 through a purchase of non-voting exchangeable warrants.
“We are pleased to announce this series of measures today that we believe place Anglesey on a much firmer financial footing from which to progress our 100% owned Parys Mountain and deliver long term value for our shareholders," said chair Andrew King.
The company said the restructuring will leave only about £100,000 of outstanding debt tied to a property at Parys Mountain.
It added that Energold’s investment will be priced using a five-day volume-weighted average and that an extraordinary general meeting will be convened to approve a consolidation of ordinary shares linked to warrant issuance.
Two executives from Energold, Brendan Cahill and Jim Williams, will join the board once the warrant offering closes.
Anglesey said the remaining steps, including Swedish regulatory approval for the transfer of Angmag, are expected to complete in due course.
In London, Anglesey shares were up over 140% changing hands at 0.72p.