NeoTerra Group (LSE:TERA) has agreed an extension of its debt facility with Catalyse Capital Limited to 30 October 2027, while retaining the facility’s fixed interest rate of 15%.
Under the revised terms, NeoTerra will pay a £50,000 reprofiling fee. Catalyse Capital’s existing right to convert the debt into shares has also been cancelled and replaced with 25 million warrants exercisable over a two-year period.
The extension provides the company with an additional year before the facility’s revised maturity date.
Conversion Right Replaced With 25 Million Warrants
As part of the amended financing arrangement, Catalyse Capital will no longer have the right to convert the debt facility into NeoTerra shares.
Instead, the lender will receive 25 million warrants, which can be exercised during a two-year period.
The facility will continue to carry a fixed annual interest rate of 15%, alongside the £50,000 fee associated with the reprofiling.
NeoTerra Advances Monte Muambe Programme
NeoTerra said it is using existing cash resources to advance its fluorspar programme at the Monte Muambe project in Mozambique.
The company is also progressing its rare earths activities with support from the U.S. Trade and Development Agency.
NeoTerra’s portfolio covers several critical raw materials, including rare earths, fluorspar, gallium and copper-silver.
NeoTerra Holds Projects in Mozambique and Botswana
NeoTerra Group is a London Main Market-listed exploration and development company focused on critical raw materials projects in Africa.
Its Monte Muambe project in Mozambique contains rare earths, fluorspar and gallium and is covered by a 25-year mining licence. Work on the project is also supported by a U.S. Trade and Development Agency grant.
The company’s portfolio additionally includes the Sesana copper-silver project in Botswana.
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