Cauldron Energy will receive the loan funds, pursuant to the converting loan agreement, by no later than 31 March 2014 and subject to receipt of shareholder approval.
Upon shareholder approval, the conversion will be 80% of the volume weighted average closing price of the Shares as quoted on ASX over the last ten trading days immediately preceding the day of receipt of the shareholder approval, Cape Lambert Resources said.
In addition to using to initiate the anticipated drilling program at Bennet Well as well as for general working capital purposes, the funds will be used to assist with the implementation of the Cauldron’s exploration programs on Yanrey project.
The Yanrey project exploration programs including exploration of E08/2385, E08/2386 and E08/2387 and are subject to grant by the Minister for Mines and Petroleum.
