Corcel PLC on Monday said it successfully refinanced its debt obligations, agreeing to make a cash repayment to its lenders Riverfort Global Opportunities PCC Ltd and YA II PN Ltd within the next three months.

The London-based mining and mineral resource development company said it successfully refinanced debt obligations of £673,348, after agreeing to make a cash payment of £235,671 to its lenders within the coming three months.

It said a 5% refinancing fee will be added to the outstanding balance. Following the refinancing and repayment, a new principal amount of £471,343 will remain.

This new balance will be subject to a twelve-month repayment holiday and then repaid in eight equal monthly instalments starting in February 2024, Corel said.

The balance of the loan will carry a 6% annual interest rate and will be convertible at a fixed price of 0.40 pence per share, a 54% premium to the closing price on January 27.

Shares in Corcel were down 3.9% to 0.25p each in London on Monday afternoon.

It said it retains the right to repay the loan early in cash, subject to a 5% early repayment fee.

‘The conclusion of a very constructive negotiation with our long-term lenders has resulted in an excellent outcome for the company, which has now cleared its immediate and mid-term debt obligations and given Corcel a solid runway to advance its mineral exploration projects, with the initial focus on the forthcoming work programme at Mt. Weld,’ said Chief Executive Officer Scott Kaintz.

On Wednesday last week, Corcel completed the sale of a 100% stake in the Burwell Energy Storage project outside of Cambridge to Burwell AL Ltd for cash proceeds of £200,000, plus reimbursement of Corcel’s grid deposit of £50,000,

This helped to reduce its corporate debt before Monday’s announced refinancing.

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