Pty Ltd and associates to manage its pearling operation at Beagle Bay on the
Dampier Peninsula in WA for an initial term of 2.5 years, with options at
Arafura’s election to extend the arrangement for a further 12.5 years.
The Beagle Bay operation is one of Western Australia’s well known pearl farms
having produced quality pearl harvests since the early 1980’s. The farm has
15,000 annual wild shell quota allowing approx 18,000 shells to be put into
production this calendar year. However, the land and sea based infrastructure is
significant and is capable of handling much higher production and grow out shell
Arafura Pearls CEO, Andrew Hewitt said the arrangement made strategic sense
for Arafura and was another significant milestone in the company’s development
giving it a Western Australian presence for the first time.
“We believe this will lead to other opportunities for the company in Western
Australia and assist in achieving our goal of becoming one of Australia’s leading
pearling groups”, he said.
As part of financing the JV arrangement, Arafura Pearls is finalising
documentation issuing $1.5 million in secured convertible notes to two existing
shareholders who are unrelated parties to the company. The convertible notes
have a three (3) year term, an interest rate 5.5% above the 180 day bank bill
rate, and may be converted at the greater of $0.45 and 80% of the volume
weighted market price at the time of conversion.
Mr Hewitt said that he was encouraged by the investor interest shown in the
convertible note issue at these conversion prices.
Further information visit arafurapearls.com.au or contact:
Chief Executive Officer
Tel: (08) 9382 4818
Mob: 0419 903 940