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(Sharecast News) - Anglesey Mining said in an update on Wednesday that it has completed a previously-announced debt restructuring, removing around 4m of liabilities from its balance sheet and leaving the company effectively debt free.
The AIM-traded minerals exploration and development group confirmed that, following completion of the restructuring, it no longer had any outstanding debt other than around 0.1m secured against a residential property at its 100%-owned Parys Mountain project in Wales.
Under the agreement with Energold, Anglesey transferred its shareholding in Angmag AB, through which it held its investment in Grngesberg Iron AB, as well as its shareholding in Labrador Iron Mines Holdings.
It also assigned all intercompany amounts owed to it by Angmag and Grngesberg Iron AB.
Swedish regulatory approval for the Angmag transfer had now been received, completing the transaction.
In connection with the restructuring, Energold invested 0.35m in December through the purchase of exchangeable warrants priced at around 7.6p each, adjusted for a subsequent share consolidation.
Shareholders approved a 10-for-one share consolidation at a general meeting on 12 February, which became effective the following day.
If Energold were to exercise all of its warrants on a one-for-one basis, it would hold 26.6% of Anglesey's enlarged share capital.
"We have turned a corner at Anglesey by eliminating the debt long overhanging our balance sheet," said chief executive Rob Marsden.
"We are now well positioned to focus entirely on our core asset, the Parys Mountain copper-zinc-lead-gold project and to deliver an exploration and development strategy for our shareholders."
The company said it would now prioritise exploration activities, including aerial geophysics and ground follow-up work, shaft dewatering as part of mine development, updating its JORC-compliant mineral resource model, and advancing plans for a pumped storage scheme in partnership with RheEnergise.
At 1217 GMT, shares in Anglesey Mining were up 33.33% at 7p.
Reporting by Josh White for Sharecast.com.