22nd Dec 2015 12:16
LONDON (Alliance News) - Aureus Mining Inc on Tuesday said it has drawn down the entirety of its USD10.0 million additional liquidity debt facility, which was provided by South African lenders Rand Merchant Bank and Nedbank Ltd, the latter of which is majority-owned by Old Mutual PLC, and backed by the Export Credit Insurance Corporation of South Africa Ltd.
The new borrowing facility must be repaid by December 31, 2017.
Aureus Mining said it has issued options that allow the lenders to purchase 20.4 million shares, with a term of five years and an exercise price of 7 pence, in payment for the granting of the facility. Shares in Aureus Mining were up 1.7% at 5.72p on Tuesday.
In addition, the existing 11.1 million warrants issued to RMB in 2014 have been re-issued on the same terms as the latest option issue.
"This new facility will, alongside the proceeds from the previously announced USD12.7 million equity financing, be used to reduce outstanding creditor balances to normal operating levels, to facilitate the procurement of additional mining equipment to accelerate mining of the New Liberty deposit, and for general working capital purposes," Aureus Mining said.
New Liberty is a gold project in Liberia.
By Samuel Agini; [email protected]; @samuelagini
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