Providence Resources has said it has received “further assurances” that a $9m (€8m) development loan to fund work at its flagship Barryroe field, off the Cork coast, is “in the process of being paid”.
The statement – which boosted the Irish exploration company’s share price by 16% – came despite yet another missed payment deadline.
The money is due from Providence’s Chinese project partner at Barryroe, APEC, and will be used to fund site survey work. Long-awaited government approval for the site survey was granted last week, with Providence saying it would commence the work later this month with or without APEC’s money.
Providence’s summer has been dominated by extended payment deadlines and the company recently raised the prospect of sourcing alternative funding if APEC’s loan doesn’t arrive by the end of August. It has extended the payment deadline until next Monday.
While Providence has not commented in detail about a funding plan-B, analysts have suggested it will either raise fresh debt finance or sell more stock through a share placing if needed.