Tonogold Announces Receipt of Conversion Commitments Representing Approximately 80 Percent of Its Outstanding Convertible Loan Notes
TONOGOLD Resources Inc. (OTC PINK:TNGL) has announced that it has received commitments for the conversion of approximately 80% of its outstanding convertible loan notes (CLNs) into common stock at a price of $0.10 per share.
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Rhea-AI Summary
TONOGOLD Resources Inc. (OTC PINK:TNGL) has announced that it has received commitments for the conversion of approximately 80% of its outstanding convertible loan notes (CLNs) into common stock at a price of $0.10 per share. This conversion is a important step towards closing the previously announced acquisition of JAG Minerals Pty , a large, diversified US-focused uranium company.
The company views this as a significant milestone, demonstrating the support of CLN investors for the JAG Minerals acquisition and its US-based uranium projects. TONOGOLD is continuing discussions with additional CLN holders to potentially increase the conversion percentage further. This development is part of the company's ongoing efforts to restructure its capital structure, as announced on April 10, 2024.
Positive
- 80% of outstanding convertible loan notes committed for conversion to equity
- Conversion price set at $0.10 per share
- Progress towards closing the acquisition of JAG Minerals Pty
- Demonstrates investor support for the company's acquisition strategy
Negative
- Potential dilution of existing shareholders due to conversion of loan notes to equity
Details
News Market Reaction – TNGL
The recorded move for TNGL in the trading session of this news was -4.19%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Highlights
TONOGOLD receives commitments for conversion of approximately
80% of its outstanding convertible loan notesConversion of the outstanding loan notes is a material part of closing the announced acquisition of large, diversified US focused uranium company JAG Minerals Pty Ltd
WOODLAND HILLS, CA / ACCESSWIRE / October 1, 2024 / TONOGOLD Resources Inc. (OTC PINK:TNGL) ("TONOGOLD" or the "Company" is pleased to inform shareholders that it has received commitments for conversion to equity of approximately 80 percent of the aggregate amount (principal and accrued interest) of its outstanding convertible loan notes (CLNs) into common stock of the Company.
As announced on April 10, 2024, the Company has been working on restructuring the capital structure and continues to make significant progress in doing so. These conversions have been into the Company's shares have been undertaken at a price of
The Company is in ongoing discussions with additional CLN holders in an effort to further increase the amount of conversion commitments. Any further increases in the percentage of conversion commitments will be announced in the future as they become material.
TONOGOLD CEO William Hunter stated: "We're pleased to have met this important milestone which we believe shows the support of our CLN investors for our recently announced acquisition of JAG Minerals and their exciting US based uranium projects."
Enquiries
For further information, please contact:
William Hunter
Interim CEO Tonogold Resources Inc
M: +1 203 856 7285
E: bhunter@tonogold.com
SOURCE: Tonogold Resources, Inc.
View the original press release on accesswire.com
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