13th Jun 2019 18:25
(Alliance News) - Mineral & Financial Investments Ltd said Thursday it has made an investment in Golden Sun Resources Ltd through the acquisition of USD250,000 of Golden Sun's Series B convertible notes.
The notes will mature at the end of April 2024, and interest will be charged at a rate of 20% per annum, calculated monthly in arrears.
Upon full conversion of the notes on Thursday, Material & Financial will hold a 2.4% stake in Golden Sun. Assuming there is no further equity financing by the maturity date, the company will own a 4.5% interest on conversion.
Golden Sun Resources currently owns the Bellavista gold mine in Puntarenas, Costa Rica, which has been permitted and is expected to be in production by the third quarter of 2019.
The mine's most recent historic resource estimate was 1.0 million ounces of gold.
"This investment is consistent with our cornerstone investment principles underpinning our ongoing search for investments with attractive financing terms backed by outstanding natural resource assets, good management and representing good value within the mining sector. Bellavista should be in production during 2019 and is precisely the type of near-term cash flow opportunity that M&FI is seeking. Bellavista is a high-quality asset that will be advanced prudently," said Chair Jacques Vaillancourt.
Shares in Mineral & Financial Investments closed 2.4% lower at 8.05 pence on Thursday.
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