Independent Resources plc (LON:IRG) told investors it has made ‘substantial progress’ improving its financial position, with arrangements to reduce indebtedness by £305,000 to £230,000.
The company revealed it has settled £148,000 of trade creditors with a £28,500 cash payment and the issue of equity at a premium price - 69.4mlnat an effective price of 0.17p each (227% higher than yesterday’s close).
It has agreed to cut debt by £96,000 through an agreement with a director of the company who has accepted a proposal to be paid in shares for past services. The price for that arrangement has yet to be agreed but it is also expected to be at a significant premium.
Further arrangements have been made to reduce debts to trade creditors.
And a significant portion of payments due to trade creditors have now been deferred until revenues from Egyptian assets begin to be received by the company.
Greg Coleman, Independent Resources chief executive, said: "I am pleased to have made further progress in our debt reduction initiatives and to have reached agreements with a number of our creditors which involve the company issuing shares in payment of outstanding debt at prices which represent a substantial premium to our prevailing market price.
“The company is continuing to explore options to secure sources of finance to support its current operations and to acquire assets which meet its demanding risk adjusted returns.
“The company also continues to progress arrangements to enable it to receive payments of accrued and future revenues on its East Ghazalat asset. The company will update the market as and when it has material new developments to report. "