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Angel Mining

  • BY: Andrew Hore |
  • POSTED: 04/02/2013 |

Greenland-focused gold miner Angel Mining has presented a deferred payment plan to its main trading creditors.

Angel is hopeful that an agreement can be reached by the middle of the month. Even so, the threat of administration hangs over Angel and its main subsidiary.

A creditor had threatened to issue a winding-up petition. Angel is working with Cyrus Capital Partners on financing and restructuring options.

Last autumn Angel announced that Cyrus Capital had extended its loan by $2m and extended the repayment date to 15 February. The total loan to be repaid is $30.4m plus interest. In return for the extension, Cyrus has been granted an option to acquire 75% of the Angel subsidiary that owns its Greenland mining operations, excluding Nalunaq. The option, which is for £1 plus the write-off of an unspecified portion of money owed to Cyrus, is exercisable if Angel has not repaid at least $3.85m of the loan.

Trading in the shares were suspended on 24 January at 0.54p, which values Angel at £5.86m. The suspension continues.

Angel has endured production and extraction problems at the Nalunaq mine. A gold pour produced 670 ounces of gold, which was sold for $1.1m. It took 14 days to produce the gold. If this rate of production can continue then the mine will be commercial.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFJanuary2013_40.pdf

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