In a further financial lift, the company has also renegotiated the terms of an outstanding $1.5 million convertible note.
Wholly-owned subsidiary Zambian Copper Pty Ltd has sold Sedgwick Resources Ltd, the entity that holds the legacy Zambian copper exploration licences, to Marble Arch Limited.
"Tidied up balance sheet"
Peppermint Innovation managing director and chief executive officer Chris Kain 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.”
With the sale now near-completed, Peppermint Innovation has received $637,000 of the purchase price and has applied the remainder to complete company affairs in Zambia.
Executed transfers for Sedgwick shares are being completed along with other documents required to register ownership of the shares in the buyer.
This sale also involves the resignation of Leigh Ryan, the company’s nominee on the Sedgwick board.
The copper assets were non-core after Peppermint Innovation re-complied under chapters 1 and 2 of the ASX Listing Rules in 2015, which resulted in a significant change in the nature and scale of its activities.
Convertible notes renegotiated
Peppermint Innovation has successfully renegotiated the terms of an outstanding $1.5 million convertible note with the Caason Group.
There have been 90% of noteholders electing to take up a new unsecured convertible note direct with Peppermint at a reduced conversion price of 1 cent per share and an extended maturity date to April 2022.
As part of that agreement, the security over Zambian Copper, which was provided to secure the repayment of the original convertible notes, was released to enable completion of the sale to take place and the funds to be retained by the company.
The issue of the new notes will exceed PIL's placement capacity and shareholder approval will be sought for this.
The remaining 10% of noteholders have maintained the existing terms of 2.5 cents per share conversion price with maturity in April 2021.