Aviva Corporation's (ASX: AVA, BSE: AVIVA) major shareholder Sentient Executive GP IV Limited has provided the company with a conversion notice to convert their convertible notes into ordinary shares in Aviva.
Following the conversion Aviva's issued share capital is 174 million shares, with Sentient holding 25.35 million - equating to around 14.6%.
The note agreement includes 7.5 million convertible notes at a face value of $0.10 per note were issued to Sentient. The convertible note agreement further made provision that Sentient can convert their convertible notes and capitalised interest at $0.10 per share.
Lindsay Reed, Aviva Director, said: "It is pleasing to note that Sentient have confirmed their continued support for Aviva by exercising its right to convert the note. Sentient's support in June 2012 through a convertible note, when the sale of AMK was negotiated was of immense value for Aviva."
Convertible note details
Aviva entered into the convertible note agreement with Sentient on 21 June 2012 when it was negotiating the sale of Aviva Mining Kenya (AMK) to African Barrick Gold.
The confidential negotiations for the sale of AMK meant that Aviva was not in a position at that stage to raise funds by way of an equity capital raising.
The convertible note funding provided Aviva with the funds required to progress the company's projects in Africa and to cover general working capital requirements until it completed the negotiations on the sale of AMK.
In some other Aviva news, earlier in the week the company invested A$125,000 in Papua New Guinea-focused explorer Coppermoly via a convertible note.
Under the Convertible Note, Aviva will also be issued with 1 million unlisted options in Coppermoly with an exercise price of $0.05 per option and expiring 36 months after the date of issue.
Queensland-based Coppermoly has large tonnage copper-gold-molybdenum projects in West New Britain in Papua New Guinea.
The company holds a 28% interest in three exploration licences - Nakru, Simuku and Talelumas -which together make up the West New Britain Project, and wholly owns its remaining exploration licence - Makmak.
Gold mining heavyweight Barrick Gold Corporation (TSX: ABX, NYSE: ABX) holds the remaining 72% interest in the West New Britain Project, but is seeking a divestment of their interests.
Lindsay Reed said at the time: "This reflects a very small investment by Aviva but provides the option to participate in a very interesting project in which more than US$20 million of exploration work has been completed."
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