Providence Resources clears debt as partnership talks progress

Irish explorer Providence Resources has confirmed the formal elimination of a near $25m (€23m) debt mountain, potentially putting it in a stronger position to land development partners for three of its biggest assets.

In a brief statement, Providence yesterday said that it has paid out the $21.7m owed to chief lender Melody Capital — via a $20m cash payment and nearly 10m shares — and has settled the outstanding amount, nearly $5m, payable from a drilling dispute with services firm Transocean.

The moves follow shareholders last week approving a vital $70m fundraising round, which will also meet working capital needs and cover the costs of planned drilling at the company’s Druid prospect off the west coast next year.