Wishbone Gold PLC (LON:WSBN), the precious metals trading and exploration company, said 63% of its loan with Sanderson Capital has been settled through the issue of shares.
The company has issued 207mln shares at an assumed price of 0.1247p each after Sanderson converted £258,500 of the outstanding total Sanderson loan of £407,141 into shares.
The conversion price was determined by the 30-day moving average of the company's share price as determined under the loan agreement.
Sanderson has agreed that it will not sell any of the shares without the permission of Wishbone. Sanderson's intention is to strengthen Wishbone's balance sheet and demonstrate support for the company's strategy, Wishbone said.