Metminco Limited (LON:MNC; ASX:MNC) said it has cancelled its extraordinary general meeting at the request of Redfield Asset Management and is in talks about raising capital to boost its cash position.
Last year Metminco agreed a convertible note facility of AU$0.75mln with Redfield to advance the Miraflores gold project in Colombia.
READ: Metminco says Redfield Asset Management has increased its holding in the company to 9.83% from 8.62%
Redfield, which has a 9.83% stake in Metminco, now wishes to redeem its notes under the unsecured convertible note deed.
“Accordingly, the company and Redfield have executed a deed to redeem, which means Redfield no longer wish to convert the notes as per the note deed and therefore the extraordinary general meeting to be held on 2 March 2018 will not be required,” Metminco’s managing director William Howe said.
The meeting had been called at the request of Redfield to consider a resolution on converting its notes and exercising options that would have pushed its shareholding above 20%.
Redfield will be paid about AU$830,000 under the deed to redeem. Metminco said it would use proceeds from any future capital raising to pay Redfield.
It also announced that it is in talks about raising capital to bolster its cash position but said there can be ”no guarantee that securing these funds will be successful”.