- Peppermint Innovation (PIL) is selling off some legacy Zambian Copper assets
- The technology company, who wholly owns a subsidiary copper miner in Zambia, will part ways with the licences for $650,000
- The company has completed the transaction for the assets, which it has described as “non-core”
- The company has also renegotiated $1.5 million of debt, pushing 90 per cent of its credit notes out a year of maturation for a lower interest rate
- Peppermint Innovation shares have been suspended since October last year, and last traded for 1.1 cents per share
Peppermint Innovation (PIL) is set to sell a legacy Zambian copper exploration licence.
The sale, transacted for a price of $650,000, went through on May 23.
Peppermint has stated the copper assets were non-core to the company, following the companies significant re-structuring in 2015.
As it moves away from the legacy licence, Peppermint had to re-list on the ASX in 2015 and had to undergo a “change in nature and scale of the company’s activities.”
That included putting the brakes on a number of activities that no longer advanced the company’s core business for commercializing banking software. This evidently includes Zambian copper exploration licences.
Peppermint has a wholly-owned subsidiary named Zambian Copper, who in turn has its own subsidiary, Sedgwick Resources, which owns a number of exploration licences in Zambia.
Under the sale, March Arch will take the licences off Peppermint’s hands.
The sale will enable the company to significantly improve its balance sheet, while providing additional working capital at a time when raising funds is difficult.
With the purchase agreement completed, the company has received $637,000 of the agreed-upon price, with the remainder being used to complete “company affairs” in Zambia.
Because of the sale, the transfer of all Sedgwick Resources shares has also been completed, along with the resignation of Leigh Ryan, Peppermint’s nominee on the Sedgwick board.
Further to all this, the company has also renegotiated debt terms for an outstanding $1.5 million convertible credit note with the Caason group.
90 per cent of noteholders have elected to take up a new unsecured convertible note directly with Peppermint, at the reduced conversion price of one per cent per share.
The maturation date has also been pushed out, now landing in April of 2022.
Chris Kain, the Managing Director and CEO of Peppermint said: “Overall, we have tidied up our balance sheet and realised funds from legacy assets – all at a time when raising capital is difficult.”
“These funds have not diluted existing shareholders and will significantly assist the company’s immediate working capital needs” he stated.
Peppermint Innovation shares have been suspended since October last year, and last traded for 1.1 cents per share.