The loan will consist of two $3 million tranches, the first of which is expected on September 12th, or the targeted closing date of the deal. It will bear interest of 10% each year.
Chairman Ivan Bebek said in a statement that the company opted for a bridge loan rather than a capital raise that would dilute its stock in order to “maintain current operations while we execute on various catalysts across our portfolio of seven gold and copper projects.”
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“The company is currently awaiting drill results from its Committee Bay project, exploration results from its Homestake Ridge project and importantly, in-process drill permits for its Sombrero project in Southern Peru, which are progressing on schedule,” Bebek added.
“Our portfolio of projects represents a high degree of optionality and the current increase in precious metal prices certainly improves all monetization and value-add options we may consider with our projects.”
The money is expected to supply the company with enough working capital to last about a year.
Along with the loan, 500,000 bonus warrants will be issued when the first tranche is closed. Each warrant is exercisable at a price of C$2 per share.
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