[miningmx.com] — FLUORSPAR producer Sallies on Tuesday said its shareholders had approved a $2.8m convertible loan from TSC Investments.
In terms of the convertible loan agreement, Sallies will borrow the capital from TSC, which under certain circumstances can then convert the loan into an estimated 167.2 million ordinary shares.
Sallies announced in January 2011 that it had secured a working capital facility of $8m from Maghreb Minerals to recommission its Witkop Mine.
To date, $5m of the Maghreb facility have been drawn down.
The convertible loan has been raised as a substitute for the remaining $3m of the Maghreb facility.
If TSC has not exercised its right of conversion, the loan is repayable at the earlier of January 2012 or the day on which the mandatory offer is announced and becomes unconditional and binding.
