Nativo Resources raises £0.3m to support Peru projects

(Sharecast News) - Nativo Resources announced on Friday that it has raised �0.3m through the issue of 315,000 interest-free convertible loan notes, each with a nominal value of 100p, to support its gold mining projects in Peru and provide general working capital.

The AIM-traded firm said the notes could be converted into ordinary shares at the request of the investor at a 29% discount to the lowest volume-weighted average price (VWAP) over the five trading days prior to conversion.

An ownership cap was in place preventing the noteholder, together with any concert parties, from acquiring more than 29.9% of Nativo's voting rights through such conversions.

Nativo said it retained the right to redeem all outstanding notes at any time with five business days' notice, paying 125% of their principal value in cash.

Any notes still outstanding after 12 months would automatically convert into equity using the same VWAP-based pricing, subject to the same ownership limit.

Any excess would be settled in cash.

"We are pleased to have raised this funding, which will contribute essential capital towards our business plan including the resumption of gold mining at Bonanza and the initiation of gold mining at Morrocota, while allowing us to advance the feasibility study on our first tailings project," commented chief executive officer Stephen Birrell.

At 1132 BST, shares in Nativo Resources were up 10% at 0.55p.

Reporting by Josh White for Sharecast.com.