Ten Sixty Four Limited has received a crucial US$10.5 million payment from Philsaga Mining Corporation, enabling it to settle outstanding related party debts and advance its Deed of Company Arrangement.
- Received US$10.5 million initial payment from Philsaga Mining Corporation
- Payment facilitates settlement of related party debts under Global Intercompany Settlement Deed
- Progresses Ten Sixty Four’s Deed of Company Arrangement implementation
- Payment received by subsidiary Mindanao Mineral Processing and Refining Corporation
- Signals improved financial stability amid restructuring
Payment Receipt Marks Financial Progress
Ten Sixty Four Limited (ASX: X64) announced on 24 January 2025 that its subsidiary, Mindanao Mineral Processing and Refining Corporation (MMPRC), has received an initial cash payment of US$10.5 million from associate Philsaga Mining Corporation. This payment is a key milestone under the Memorandum of Agreement between the two entities, originally disclosed in January 2025.
The receipt of these funds is significant as it enables Ten Sixty Four to clear outstanding related party debts as stipulated in the Global Intercompany Settlement Deed announced in June 2024. This debt settlement is a critical step towards the full effectuation of the company’s Deed of Company Arrangement (DOCA), which was first announced in November 2023.
Implications for Restructuring and Stability
Ten Sixty Four has been navigating a complex restructuring process, and the inflow of US$10.5 million provides much-needed liquidity to address legacy obligations. The payment not only shores up the company’s balance sheet but also signals progress in its broader turnaround strategy. Clearing related party debts reduces financial uncertainty and may improve stakeholder confidence, including creditors and investors closely monitoring the DOCA’s implementation.
While this initial payment is encouraging, the full financial impact will depend on subsequent payments and the company’s ability to maintain operational momentum. The relationship between MMPRC and Philsaga Mining Corporation remains central to Ten Sixty Four’s path forward, highlighting the importance of ongoing collaboration between these entities.
Looking Ahead
CEO Simon Theobald and the Board have authorised the announcement, underscoring management’s commitment to transparency during this restructuring phase. Investors will be watching closely for further updates on the timing and scale of future payments under the agreement, as well as any additional steps taken to fully implement the DOCA.
Overall, this development marks a cautiously optimistic chapter for Ten Sixty Four, as it moves from uncertainty towards greater financial clarity and operational stability.
Bottom Line?
Ten Sixty Four’s receipt of US$10.5 million is a pivotal step, but the road to full recovery remains contingent on future payments and restructuring progress.
Questions in the middle?
- What is the timeline and certainty around future payments from Philsaga Mining Corporation?
- How will the settlement of related party debts affect Ten Sixty Four’s overall capital structure?
- What operational or strategic changes will accompany the next phases of the Deed of Company Arrangement?