RNS Number : 1263I
Petroneft Resources PLC
02 August 2023
 

PetroNeft Resources plc

 

2nd  August 2023

 

PetroNeft Resources plc ('PetroNeft' or 'the Company')

 

COMPANY UPDATE

 

PetroNeft announces that a loan settlement agreement has been executed with Petrogrand AB ("Petrogrand") regarding an outstanding loan.

Background

The Petrogrand loan had a final maturity date of 15th March 2023. The outstanding amount of the loan as of 30th June 2023 was US $2,653,221 comprising US $2,297,719 of principal and US $355,502 of accrued interest. The Company has signed a settlement agreement with Petrogrand to pay a sum of $689,316 as full and final settlement of the loan, resulting in a 74% reduction in the total debt due to Petrogrand.

 

The terms of the loan settlement agreement are:

 

·    PetroNeft to pay $689,316 representing 30% of outstanding principal of $2,297,719 within seven days of receiving funds from the sale of Lineynoye LLC (owner of Licence 67).

 

·    Petrogrand will waive 70% of the principal ($1,608,403) and 100% of the accumulated interest ($355,502).

 

·    Petrogrand will have an option at zero cost over 65 million PetroNeft shares which represents 6.06% of the current issued share capital of the Company. The option will be exercisable at any time up to 2 August 2025, being two years from signing of the debt settlement agreement. 

 

The loan agreement is conditional on the successful closure of the sale of Lineynoye LLC. PetroNeft announced on 14 June 2023 that it had entered into a non-binding conditional Heads of Terms to sell its entire interest in Lineynoye LLC, the subsidiary through which the Company holds its interest in Licence 67, to Pavel Tetyakov (CEO of PetroNeft).

           

Due to Petrogrand being an associate (as defined in the AIM Rules and Euronext Growth Rules) of Mr Maxim Korobov, who through Natlata Partners Limited, is a major shareholder in PetroNeft, the [loan settlement agreement] constitutes a related party transaction pursuant to AIM and Euronext Growth Rules. The directors of the Company, having consulted the Company's nominated advisor and Euronext Growth adviser, consider the terms of the loan settlement agreement to be fair and reasonable insofar as the Company's independent shareholders are concerned.

For further information, contact:


Pavel Tetyakov, CEO, PetroNeft Resources plc

+353 1 6470280

Brian Garrahy/Ciara Mongain, Davy (NOMAD and Euronext Adviser)      

+353 1 679 6363

Paul O'Kane, Murray Consultants

+353 1 498 0300

 

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