Zinc and base metals firm Zincore Metals Inc (AQSE:ZNC) said that it and its Peruvian subsidiary have struck creditor agreements with the company’s chief executive to turn amounts owing to him into long term debt obligations.
The total amount of debt under these agreements is US$272,125.29 which are owed to the firm's president, chief executive and director Jorge Benavides, for loans provided and outstanding fees.
Chief financial officer Adam Ho said: "By restructuring these amounts as long term obligations, we will reduce our working capital deficit.
"We believe that this will help us move closer to meeting the listing requirements to move from the NEX Exchange to the TSX-V."
"We have made tremendous progress during 2017 in restructuring our debts through negotiated settlements, shares for debt agreements and now these long-term creditor agreements.
"We hope that this progress will be noted by investors, especially given the current market interest in zinc companies and our belief in strong fundamentals for the underlying zinc market over the next few years”.
The new agreements will mature and become due and payable 20-months after Zincore completes a financing for a minimum of C$600,000.
They will be subject to interest rates of 12-month LIBOR, with the principal and applicable interest due at maturity.
If the company is unable to pay the obligations when they are due, they will be subject to an additional 2% annualized penalty.
Shares stand at C$0.35.