Hodges Resources Limited says it has secured funding to continue to finance the Morupule South Coal Project in Botswana. The Company has agreed to issue convertible notes to the value of A$0.8 million to sophisticated investors and a separate disclosure document is not required.
The key terms for the convertible notes will be detailed in the Appendix 3B which will be released to the market when the convertible notes are issued.
Hodges’ Managing Director, Mark Major said says the issue of the convertible notes will ensure that the Company has sufficient funds to continue its expenditure requirements on the Morupule South project in Botswana while we negotiate the payment terms of the US$3 million refundable option fee under the Moiyabana agreement.
“It is a very welcome investment in the Company at a time of such uncertainty in the capital markets. It is a low cost way of funding our commitments and provides additional scope to advance the Company’s key project. We consider the company undervalued and with the recent resource upgrade and pending project scoping studies we consider this is the best way to achieve the bridging funds for the short term,” he explains