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Black Mountain Resources (AIM:BMZ) the silver focused development company with interests in the US, has said that it has secured A$3 million strategic long term debt financing with Alcyone Resources Limited (ASX:AYN) which will be utilised towards funding the development of the New Departure and Conjecture Silver Projects.
Company chairman Peter Landau said, “We are delighted to have secured the funding and support of silver producer Alcyone Resources. Not only will this $3million capital injection enable us to advance our high grade New Departure Silver Project into targeted production in the first quarter of 2014 but it will also facilitate significant development of our Conjecture Silver Project. We are fully committed to our low production cost and low capex business model.”
Key Funding Terms:
– The A$3 million loan facility is for 36 months (bullet repayment) with interest payable at a rate of 12% pa payable annually
– The Company may repay any funds drawn early provided a minimum of 12 months interest is paid
– Pursuant to the facility, Alcyone will have equal first ranking security and will also have the right to appoint a director to the Board of Black Mountain subject to any required regulatory approvals
– The issue of 4,675,260 fully paid ordinary shares to Alcyone (or their nominee) together with the issue of 4,675,260 unlisted options ($0.15; 30 November 2016) subject to shareholder approval
Issue of Capital:
The company proposes to issue 4,675,260 fully paid ordinary shares pursuant to the facility under its placement capacity and 4,675,260 unlisted options ($0.15; 30 November 2016) subject to shareholder approval. In addition the Company also intends to issue 15,000,000 listed options ($0.20; 7 May 2015) following shareholder approval granted at the recent AGM; 1,750,000 fully paid ordinary shares and 3,000,000 unlisted options ($0.12; 3 years) pursuant to existing debt facilities, 2,456,666 fully paid ordinary shares in lieu of interest payable on existing debt facilities, 2,854,286 fully paid ordinary shares as advisor fees, and 120,000 fully paid ordinary shares to local in country management under its placement capacity.
Following the issue of these shares, the company will have a total of 98,180,478 ordinary shares on issue. Application will be made for the 11,856,212 shares to be admitted to trading on the ASX and AIM. Trading in the new shares is expected to commence on AIM on or around 3 January 2014.
