(MENAFN- ProactiveInvestors)Independent Resources plc (LON:IRG) told investors it has cut indebtedness and reduced cash outgoings. The company has agreed to swap new equity for debt with trade creditors as well as certain directors. Some £297989 of debt to trade creditors will now be satisfied with the issue of 245mln new shares (some priced at 0.1p and some at 0.25p). Separately shares worth £202000 will be issued to company directors as payment for past services and those shares are expected to be issued at a significant premium to 0.085p. IRG also revealed it has planned to reduce annual cash costs to £700000 for the twelve months from May 1 and intends to cut ongoing costs by £50000 per month thereafter. Greg Coleman Independent Resources chief executive said: "I am pleased to have received the support of a number of our creditors who have shown confidence in the company by agreeing to accept shares as payment of the debt owed to them by the company at prices which represent a substantial premium to our prevailing market price. 'This debt reduction together with the substantial reduction in cash costs which we intend to achieve puts the company on a sounder financial footing. 'The company remains committed to generating positive cash flow from its existing asset base and continues to seek sources of finance to support its current operations and to acquire assets which meet demanding risk adjusted returns." Independent Resources noted that it expects formalities relating to the recently acquired interest in the East Ghazalat operations in Egypt to be completed within approximately two months and said this would allow it to receive is share of revenue from the asset directly from the Egyptian General Petroleum Corporation. The company is currently in dispute with North Petroleum International SA the operator of East Ghazalat.
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