Glencore restructured its $5M convertible facility with Tantalex Lithium, extending maturity to 2028 and raising the interest rate to SOFR+8%. Conversion rights capped at 20%.
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Glencore AG restructured its convertible loan agreement with Tantalex Lithium Resources Corp., keeping the $5 million commitment alive with new terms that extend the maturity and raise the interest rate.
The amended facility, signed July 17, replaces the original November 2023 deal. It covers three separate convertible term loan facilities with total commitments of $5 million. As of June 30, the outstanding principal was $4.35 million with roughly $1.7 million in accrued interest, fees and expenses.
The loans now run to September 30, 2028. Each loan bears interest at one-month CME Term SOFR plus 8% per annum, a shift from the prior three-month SOFR plus margin. The change tightens the interest rate benchmark to a shorter tenor.
Glencore can convert the loans into Tantalex common shares at the conversion price during a window that starts 21 trading days after the closing date and ends the business day before the termination date. The conversion right is capped: Glencore cannot hold more than 20% of Tantalex's outstanding shares after any conversion. Any amount that would exceed the cap stays outstanding under the three facilities, allocated pro rata. Glencore owns no Tantalex shares today.
The deal provides Tantalex with working capital at a time when lithium prices have pulled back from 2023 highs. The company, a lithium resource developer focused on African assets, has relied on this Glencore backing since the original $5 million facility was put in place in late 2023. The amendment resets the terms without increasing the total commitment, suggesting Glencore is willing to keep the credit line open but not expand it.
Tantalex shares trade on the TSX Venture Exchange. The company has not yet started commercial production at its flagship project. The amended facility gives it runway through 2028 to advance development.
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