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Mariana Resources secures up to US$6 million investment to fund growth of South American exploration portfolio over the next 12 months
Mariana Resources Ltd , the AIM quoted exploration and development company focused in Peru, southern Argentina and Chile, has entered into a convertible securities issuance deed with Bergen Global Opportunity Fund, LP, an institutional investment fund managed by Bergen Asset Management, LLC, a New York asset management firm. The Agreement allows for the issuance by the Company of zero coupon convertible securities for an initial amount of US$2,000,000 immediately, and up to a further US$4,000,000.
Highlights:
– Flexible funding at the option of the Company by way of US$6,000,000 in three staged zero coupon convertible securities allowing Mariana to fund further working capital in its South American portfolio over the next 12 months
– Initial drawdown of US$2,000,000, with conversion prices tied to future prices of the Company’s shares and with the staged funding which is at the Company’s option, potentially minimising dilution for existing shareholders
– A number of contractual limitations imposed on the Investor, e.g. no short selling of the Company’s shares is permitted, and the Investor has agreed to substantial limits on its ability to sell shares.
Mariana’s CEO Glen Parsons said, “We are delighted to welcome another institutional investor, Bergen, to our register. The securing of this US$6 million funding comes at an exciting time for Mariana following our recent entry into an option to secure up to 70% of two potentially strategic high grade gold tenements, the Rurimarac Properties in Peru.”
“This cash injection will help us to further develop our growing South American focused portfolio. This includes the highly prospective Soledad copper-gold property in Peru where we are currently working through our results to determine a follow-up drill programme; our Peruvian Condor de Oro copper-gold-molybdenum project where we are strategically assessing how we advance the project and evaluating the joint venture possibilities; and our Argentinian projects, Las Calandrias and Los Cisnes properties, where we are applying a low cost exploration strategy to develop new high grade targets.
“This funding also gives us the flexibility to look at other potentially exciting opportunities that could bolster our portfolio. I look forward to providing further updates in due course.”
