Shuka unable to immediately draw down funds from AUO
Aim-listed Shuka Minerals, which operates the Rukwa coal project in Tanzania, has asked to draw down £500 000 for general working capital purposes from a £2-million convertible note instrument with AUO Commercial Brokerage.
However, AUO has advised that its investment capital is currently tied up in ongoing transactions that have taken longer to conclude than expected.
Shuka is, therefore, unable to access the requested initial drawdown funds.
Shuka notes that AUO has expressed its commitment to its obligations under the convertible note instrument entered into with Shuka in May and that it is trying to raise the necessary funding in the short term to satisfy the initial drawdown.
The timing of this is, however, uncertain.
Shuka informs shareholders that it has sufficient funds available to the end of October.
The company produces coal from the Rukwa project in Tanzania, and holds copper, lead and zinc prospects in Zambia and South Africa.
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