Iron ore miner and explorer Territory Resources Ltd
(ASX:TTY) says it has reached an agreement with its financiers, the hedge book facility provider and Noble Resources Ltd, for the transfer of the company’s bank debt to Noble.
Settlement of transfer is expected to take place today.
Under the terms of the agreement Territory says Noble has agreed to purchase two short term loans currently worth $17.6 million that Territory owes to the bank, together with the banks interest in securities relating to those loans.
The loans are currently secured by a fixed and floating charge over Territory’s assets, a mortgage over its shares in key subsidiaries and a mining tenement over its Francis Creek mining leases.
They are also secured by a fixed and floating charge over the assets of its wholly owned subsidiary Territory Iron and a guarantee and indemnity from Territory Iron which guarantees the performance of Territory’s obligations to the bank and Noble.
Noble has also given the company an extension to the repayment date of its loans until 5pm on October 19 to allow discussions regarding a restructure of the ongoing Noble debt arrangements.
Territory Resources has posted net losses over the last five years.
