Ten Sixty Four Limited Finalizes Key Agreement with Philsaga Mining Corporation
X64 (X64) Share Update December 2024 Friday 13th
Ten Sixty Four Limited Announces Memorandum of Agreement with Philsaga Mining Corporation
Ten Sixty Four Limited (ASX: X64) has reached a pivotal Memorandum of Agreement (MOA) with Philsaga Mining Corporation, marking a crucial step in the company's restructuring efforts.
Instant Summary:
- Finalization of MOA between MMPRC and PMC.
- USD248 million loan settlement agreement.
- Special preference dividend of USD108 million to PMC.
- USD140 million cash repayment plan from PMC.
- Extension of DOCA effectuation to 31 January 2025.
Memorandum of Agreement Details
The Board of Directors of Ten Sixty Four Limited and its subsidiary, Mindanao Mineral Processing and Refining Corporation (MMPRC), have finalized a Memorandum of Agreement with Philsaga Mining Corporation (PMC). This agreement is a significant milestone in settling a disputed USD248 million loan made by MMPRC to PMC.
The MOA outlines a structured repayment plan, including a special preference dividend of USD108 million to PMC, which will be applied against the loan. Additionally, PMC will make cash payments totaling USD140 million to MMPRC in several tranches, commencing with an initial payment of USD10.5 million.
Financial Terms and Timeline
The repayment plan includes a second tranche of USD4.662 million, followed by monthly or quarterly installments starting January 2026. These payments will help clear outstanding related party debts, as required under the Global Intercompany Settlement Deed.
The sunset date for the effectuation of the Deed of Company Arrangement (DOCA) has been extended to 31 January 2025, with potential for further extensions if necessary.
CEO's Statement
Simon Theobald, CEO of Ten Sixty Four Limited, expressed optimism about the agreement, stating that it represents a significant step in the company's restructuring process. He acknowledged the patience of shareholders throughout the complex negotiations and emphasized the company's strong position moving forward.
The finalization of the MOA is expected to positively impact Ten Sixty Four Limited's financial stability and market perception. By resolving a major financial dispute and outlining a clear repayment plan, the company is likely to enhance investor confidence. The structured approach to debt settlement may also improve the company's creditworthiness and pave the way for future growth opportunities.
Investor Reaction:
Analysts are likely to view this development as a positive step towards financial recovery for Ten Sixty Four Limited. The resolution of the loan dispute and the structured repayment plan could be seen as indicators of improved financial management and strategic planning.
Conclusion:
Investors should closely monitor the execution of the MOA and the subsequent financial developments. The successful implementation of this agreement could significantly enhance the company's financial health and market position. Staying informed on further updates will be crucial for making informed investment decisions.