Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF, FRA:3XS0) said on Tuesday it has fully eliminated all outstanding principal owed to Nebari Natural Resources Credit Fund I LP, reducing the debt from $15 million to zero through a combination of repayments and equity conversions.
The final reduction came after Nebari submitted additional conversion notices under a revised credit agreement, converting $4.75 million of debt at a price of $0.2097 per share, resulting in the issuance of about 22.7 million common shares, Gunnison said.
The company said the move removes legacy secured debt from its capital structure and aligns with its strategy of maintaining an equity-based balance sheet until construction of its flagship Gunnison copper project.
“The repayment of the Nebari debt is a major milestone for Gunnison,” said Craig Hallworth, senior vice president and chief financial officer. Hallworth told shareholders that the company now has greater financial flexibility as it advances the project.
Nebari partner Andre Krol said the conversions reflected Gunnison’s progress under its management team.
Gunnison said all principal under the amended credit agreement has now been repaid or converted. The company added it will repay outstanding interest for the partial month and is working with Nebari to secure the release of related security documents.