Theta Gold Mines (ASX:TGM) issued around 44 million fully-paid ordinary shares, along with 10 million unlisted options, following the agreement of the convertible lenders to convert the outstanding principal and interest totaling AU$7.8 million, according to a Friday Australian bourse filing.

The company's convertible lenders had earlier agreed to convert all outstanding loan principal along with accrued interest totaling about AU$7.8 million into shares.

The shares were converted at an exercise price of AU$0.17647 apiece, while the options will have an exercise price of AU$0.32 and an expiry date of 18 months from the date of the grant.

The company's shares fell past 2% in recent trading on Friday.