Alphamin Resources announced that it intends to raise nearly $15m by way of a non-brokered private placement to fund the continued development of the company’s 80.75% owned Bisie Tin Project and for general corporate purposes.
The Private Placement is intended to be completed with the Company’s 44.86% shareholder, Tremont Master, for up to 76,800,000 common shares of the Company (the Common Shares) at a price of C$0.25 per Common Share. The number of Common Shares being subscribed for by Tremont will be reduced in the event other investors participate in the Private Placement, subject to a minimum subscription by Tremont of 44.86% of the Private Placement.
The Company is partnering in the development of the Project with the Government of the Democratic Republic of Congo, which has a free carried interest of 5%, and the Industrial Corporation of South Africa (the IDC), which has an interest of 14.25%.
Completion of the Private Placement is subject to customary conditions, including the approval of the TSX Venture Exchange (the TSXV) and all other necessary regulatory approvals. The Private Placement is expected to close on or about June 18, 2018.
All of the Common Shares sold pursuant to the Private Placement will be subject to a four month hold period which will expire four months and one day from the date of closing of the Private Placement.
The Company has also called the next drawdown (the Draw) pursuant to the previously announced credit facility of up to $80m (the Credit Facility), which is expected to be received in early June. In addition, the Company intends to convert, subject to TSXV approval, $3.396m of debt which will become due to Sprott Private Resource Lending (Collector), L.P., Tremont Master Holdings and Barak Fund SPC Limited concurrently with the Draw in accordance with the terms of the Credit Facility, into 17,389,387 Common Shares at the same price per share as the Private Placement.
All amounts have been translated using exchange rates of USD1: CAD1.28, being the exchange rate prevailing on May 23, 2018.
Additional equity funding from the Industrial Development Corporation of South Africa (IDC) in the amount of approximately $7.1m has also been approved in the Company’s 80.75% owned subsidiary, Alphamin Bisie Mining SA (ABM). The investment maintains the IDC’s 14.25% shareholding in ABM.
The Company also announces that it has received and accepted the resignation of Bernard Swanepoel, a non-executive director of the Company. The resignation takes effect from May 28, 2018. The Company wishes to thank Swanepoel for his contribution as director of the Company.
Source: Company Press Release