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GB Minerals raises C$2mln to develop Farim property

Last updated: 04:14 19 Mar 2014 EDT, First published: 05:14 19 Mar 2014 EDT

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West Africa focused phospate firm GB MInerals (LON:GBL) has raised gross proceeds of C$2 million from a private placing, which will partly go to developing its Farim project in Guinea-Bissau.

The funds were raised by issuing a total of C$2mln of 10% secured convertible debentures in the company.

Aterra Investments subscribed for C$1mln and Alpha Infrastructure has also subscribed for C$1mln in the placing, GB revealed.

The debentures have a face value of C$1,000 and each bear interest of 10% a year. Every C$1,000 of the debentures are convertible at any time, into GB shares at C$0.20 a share.

The firm also struck an agreement with Aterra to extend the maturity date of its other outstanding convertible debentures in the firm to June 30 this year amounting to C$ 2.1mln, which is now being formalised.

GB MInerals said the net proceeds of the today's placing will be used for repaying existing convertible debentures amounting to C$500,000 that are maturing as of the end of this month.

It will also go to developing the group's Farim phosphate mineral property, funding litigation against GBM Minerals Engineering Consultants and for additional working capital. 

The Farim project contains a measured resource of 64.6 million tonnes at 29.11% phosphate, and an indicated resource of 28.1 million tonnes at 27.68% phosphate.

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