Alliance Mineral not taking loan from Burwill after separate debt funding secured

CATALIST-listed Alliance Mineral Assets will not be extended a A$4.8 million loan by Hong Kong-listed Burwill Commodity as both parties have mutually agreed to discontinue talks.

This is after the Australian mining firm secured up to A$13 million (S$13.06 million) of debt funding from a consortium led by Australian investment fund Tribeca in March.

In October 2017, Alliance Mineral and Burwill - a Chinese steel trading and mining firm - entered a binding term sheet and later a letter of variation, to vary the terms of the binding term sheet.

In a regulatory filing on Friday, Alliance Mineral said both parties have agreed to end further discussions on the terms and timing of the loan, and the loan will not take place.

The decision was made after taking into account the A$13 million secured in debt funding, as well as the A$25 million underwritten placement of shares announced on Apr 5, said Alliance Mineral.