This announcement from Magnetite Mines Limited, released on...

This announcement from Magnetite Mines Limited, released on August 23, 2023, provides information about an agreement they've reached with the liquidator of Mintech Resources Pty Ltd (Mintech) regarding certain financial instruments known as "redeemable convertible notes." Here's a breakdown of the key points:

1. Parties Involved: Magnetite Mines Limited (ASX:MGT) and Mintech Resources Pty Ltd (in liquidation) (Mintech) are the main parties involved.

2. Background: In 2015, Magnetite Mines issued redeemable convertible notes (referred to as "Notes") to Mintech as part of a renegotiated deal related to the acquisition of the Razorback Project, which is likely a mining or resource-related project.

3. Agreement Details: The announcement states that Magnetite Mines and the liquidator of Mintech have agreed to modify the terms of the Notes.

4. Extension of Maturity Date: The original maturity date of the Notes, when they were supposed to be repaid, was August 31, 2023. However, as per the newly reached agreement, this maturity date has been extended by seven months to March 31, 2024.

5. Interest Rate: The interest rate applicable to the Notes for the period from September 1, 2023, to March 31, 2024, will be 10% per annum.

6. Conversion of Notes: Previously, there seems to have been an option for Magnetite Mines to convert the Notes into shares of the company. However, they have agreed to waive this right, and instead, they will redeem the value of the Notes in cash before the maturity date.

7. Consideration and Fee: In return for Mintech agreeing to the revised terms of the Notes, Magnetite Mines will pay Mintech a fee of $200,000 (plus GST).

8. Formal Amendment: The agreement will be formalized through an amendment to the terms of the Notes in the coming weeks.

9. Creditors Meeting: The liquidator of Mintech intends to convene a meeting for Mintech's creditors, likely to discuss and seek approval for this agreement. This meeting is expected to take place before the end of September 2023.

10. Announcement of Meeting Results: Magnetite Mines intends to announce the results of the creditors' meeting once they become known.

In summary, this announcement outlines an agreement between Magnetite Mines and the liquidator of Mintech to extend the maturity date of redeemable convertible notes, change the interest rate, and forgo the option to convert the notes into shares. The agreement is subject to approval by Mintech's creditors, and the company will provide further updates as the process unfolds.

Sounds pretty FLUFFY doesn't it?????