Proceeds will be used for development and construction of Ming Mine
By Devika Patel
Knoxville, Tenn., Sept. 30 - Rambler Metals and Mining plc said it negotiated a two-year secured credit facility with Sprott Resource Lending Partnership. The facility may be for $10 million or C$10 million, at the company's option.
The facility allows an initial drawdown of $5 million, which must be drawn within 30 days of settlement. A second draw of up to $5 million is available through August 2012. Each drawdown is repayable by March 29, 2013 and accrues interest at a fixed rate of 9.25%.
The investor will also receive a structuring fee of C$100,000 and a 3% commitment fee of C$300,000. The company plans to issue C$300,000 of ordinary shares in lieu of the commitment fee. In addition, a 4% drawdown fee on the amounts drawn under the facility will be paid in ordinary shares. The company may not issue more than 2.75 million ordinary shares in connection with this deal.
Proceeds will be used for working capital requirements along with the development and construction of Rambler's Ming Mine.
The copper and gold explorer is based in Surrey, England.
| Issuer: | Rambler Metals and Mining plc
|
| Issue: | Secured credit facility
|
| Amount: | $10 million or C$10 million
|
| Maturity: | March 29, 2013
|
| Coupon: | 9.25%
|
| Warrants: | No
|
| Investor: | Sprott Resource Lending Partnership
|
| Fees: | C$400,000, with C$300,000 paid in ordinary shares; 4% drawdown fee paid in shares
|
| Pricing date: | Sept. 30
|
| Stock symbol: | London: RMM
|
| Stock price: | 28p at close Sept. 30
|
| Market capitalization: | £34.68 million
|
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