Cove Resources (ASX:CVE) has secured an in-principle approval for a $5 million debt facilty that will help with the completion and acquisition of bankable feasibilty study at Koivu titanium project in Finland.
The debt facility comes after RMB Resources successfully completed the due diligene on the Koivu titanium project.
The facility is subject to completion of a number of conditions precedent including final credit approval which is expected in late March 2013 and completion of formal loan documentation.
The funds will be drawn down in two tranches with $3.0 million available at closing and the balance of $2.0 million subject to the completion of an equity raising of $3.0 million.
The loan documentation and condition precedent signoffs are likely to be completed before 15 April 2013 when the tranche two acquisition payment of Euro 850,000 is due.
Last July Cove Resources had unveiled the plan to acquire Cove Finland Oy, which gave it control of the Koivu titanium project for a total consideration of Euro 9 million.
The Koivu titanium project could lead Cove to become a major producer of high quality titanium feedestock in Finland.
Cove has already secured shareholder approval for the issue of the securities
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