Reykjavik, Oct. 04, 2024 (GLOBE NEWSWIRE) — (Amaroq or the Corporation or the Company)
Amendments and Conversion of Convertible Notes
TORONTO, ONTARIO “ 4 October 2024 – Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ Iceland: AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland, announces that the Company has entered into an agreement with the holders of its US$22.4m convertible notes due 2027 to convert the notes into new common shares, in order to simplify the Company’s capital structure, reduce cash interest costs and permit future financial flexibility.
The Convertible Notes were issued and previously disclosed on September 1, 2023. The Company has amended the Convertible Notes to permit the payment of the outstanding interest and commitment fees in common shares of the Company (Common Shares) at a conversion price equal to closing price of the Common Shares on the TSX Venture Exchange (TSXV) on the trading day immediately prior to such conversion. The amendments to the Convertible Notes are subject to final TSXV approval.
The Company further announces that the holders of the Convertible Notes have elected to convert all of the outstanding principal of the Convertible Notes into 33,629,068 Common Shares (the Principal Conversion Shares) at a conversion price of C$0.90 ( £0.525) per Principal Conversion Share and all of the outstanding interest of the Convertible Notes into 1,293,356 Common Shares (the Interest Conversion Shares) at a conversion price of C$1.3 ( £0.73) per Interest Conversion Shares (the Interest Conversion).
The Company and the holders of the Convertible Notes also agreed to make 70% of the total amount of the outstanding commitment fee immediately payable. The holders of the Convertible Notes have elected to convert such commitment fee payable into 3,307,502 Common Shares (the Commitment Fee Conversion Shares) in aggregate, at a conversion price of C$1.3 ( £0.73) per Commitment Fee Conversion Share (the Commitment Fee Conversion).
Subject to the consent of the TSXV, the Company expects to issue the Principal Conversion Shares, Interest Conversion Shares and Commitment Fee Conversion Shares in October 2024.
The Interest Conversion and Commitment Fee Conversion are treated as a Shares for Debt transaction under Policy 4.3 of the TSXV, and the interest and commitment fees payable shall be settled in consideration for the Interest Conversion Shares and…
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