1st May 2014 11:13
LONDON (Alliance News) - Savannah Resources PLC saw its shares rise Thursday after it said it had paused drawing down funds from its facility with the Bergen Global Opportunity Fund LP for 30 days due to the general share market conditions for junior resources companies.
In a statement, the company said it had drawn down USD800,000 under the facility to date, and Bergen had retained all the shares that it had been issued.
Savannah said it has the right to pause drawdowns under the terms of the facility, and it also has the right to terminate the facility at any time and not to issue further shares on payment of a "modest" termination fee.
"The facility has been carefully crafted with Bergen to provide flexibility in various market scenarios. The current pause is an example of the optionality afforded by the facility when market conditions change," Savannah Chief Executive David Archer said in a statement.
Savannah had said in early April that it had secured an investment of up to USD6.3 million from Bergen through a private placement agreement and by issuing it with an unsecured convertible. It said it would use the facilities to fund its acquisition of a copper project portfolio in Oman, as well developing other operations.
Bergen is an institutional investment fund managed by Bergen Asset Management, LLC, a New York asset management firm.
Savannah Resources shares were up 11.2% at 5.70 pence Thursday, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @stevemcgrath1
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