Technology Minerals (LSE:TM1), the UK listed company focused on building national resource and manufacturing resilience, has agreed to settle its disputed convertible loan note position with CLG Capital for £700,000.
That compares with an asserted claim of approximately £1.0 million, and completes the restructuring of the Company's principal legacy convertible loan note (CLN) liabilities.
The CLG deal follows earlier settlements with Jonathan Swann and Atlas, and together the three agreements have secured aggregate discounts of approximately £1.5 million against original positions totalling around £6.8 million.
Combined with prior capitalisations and cash settlements, the Company's residual legacy CLN exposure has been reduced to longer-dated term loan arrangements of approximately £2.293 million.
Under the CLG settlement deed, £300,000 will be satisfied through shares issued at nominal value, subject to a three-month lock-up and a further three-month orderly market period.
A further £368,000 will be settled via a new term loan note, with £32,000 payable in cash.
The Company retains discretion to reduce the term loan note by up to £68,000 within 90 days.
"The Board considers that this completes the initial phase of the Company's balance sheet reset and provides a cleaner, more sustainable capital structure from which to execute the Mantle strategy," the Company said.
Technology Minerals will issue a further announcement on the delivery of the shares and the resulting total voting rights.
News Intelligence what this means for the company
Technology Minerals has settled its final legacy convertible loan note dispute, agreeing with CLG Capital to pay £700,000 against a £1.0 million claim. This closes the restructuring of three major CLN liabilities—securing £1.5 million in aggregate discounts against original positions of £6.8 million—and leaves the company with £2.293 million in longer-dated term debt. The board frames this as completing the "initial phase" of balance sheet reset, positioning the company to execute its Mantle strategy from a cleaner capital structure.
The settlement reduces near-term refinancing risk and removes a source of balance sheet uncertainty that has hung over the company through multiple restructuring rounds. However, £2.293 million in residual term debt remains; the real test is whether the cleaner structure enables the company to advance its mineral projects and access growth capital without further dilution or distressed refinancing.
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