This issue relates to a debt for equity swap agreement to settle a loan announced to the ASX on 7 September 2017 in conjunction with a placement and share purchase plan.
The strengthening of PNX’s balance sheet via the placement and share purchase plan has assisted the company in progressing the Hayes Creek Zinc-Gold-Silver Project.
The reason for the extension is to allow time for the Foreign Investment Review Board (FIRB) to approve the issue of shares to Marilei.
The transaction is expected to be completed on or before March 25, 2018.
There are no amendments to the terms of the transaction which involves the issue of 80 million shares at $0.015.
Decision provides clarity and certainty
The placement and associated transactions placed PNX in a debt-free position.
This continues to be the case with the company having cash on hand of $1.9 million as at December 31, 2017.
The company also expects to receive a $400,000 research and development claim in March.