Oil and gas exploration company PetroNeft said it has agreed a new convertible loan facility of $1.3 million with a group of five lenders.
The company, which operates in the Tomsk Oblast, in the Russian Federation, said the loan will mature on December 31st 2020 or on the sale of either Licence 61 or Licence 67 in the region.
With an interest rate of 8 per cent above the USD Libor, the loan facility will be used for ongoing operational and general corporate purposes, the company said.
Under the terms of the loan, lenders can elect at any time to convert up to 65 per cent of the outstanding loan to shares at a conversion price of 1.547 cent.
Among the lenders are Petroneft shareholders Natlata Partners and Daria Shaftelsk, and PetroNeft chief executive David Sturt.
"We are pleased with this fundraising which demonstrates the continued support from our larger shareholders," said chairman David Golder. "This facility provides some additional head room to the company while we continue to progress the process to evaluate the possible sale or development of Licence 61 and/or Licence 67."
