LONDON (ShareCast) - (Sharecast News) - Conroy Gold announced an agreement on Thursday, to restructure €3.36m of liabilities owed to certain current and former directors into instruments linked to future commercial production and share price performance.
Under the deal, 20% of the amounts owed were written off, with the remaining 80% to be repaid via a 2% net smelter royalty on production from the company's Irish gold projects after a four-year deferral period.

Payment would only be made once commercial production begins, with the liability subject to a 3% annual inflation adjustment capped at the original amount owed.

In addition, participants would receive 8.07 million share options with a seven-year term and a 30p exercise price - more than five times the current market price of 5.3p.

Those options, if exercised, would represent 12.8% of the enlarged share capital.

Chairman John Sherman said the agreement "recognises the value of the work by these directors in discovering two district scale gold trends" and "is anticipated to help the company attract new investment to advance its 'Discs of Gold' project."

The arrangement would need shareholder approval at or before the annual general meeting for the financial year ended 31 May.

Conroy said its independent directors, after consulting with its nominated adviser, had deemed the terms fair and reasonable for shareholders.

At 1103 BST, shares in Conroy Gold and Natural Resources were up 22.08% at 6.47p.

Reporting by Josh White for Sharecast.com.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE