Cape Lambert Resources Limited (ASX:CFE) has surged 30% after executing a $15 million finance facility which provides flexibility in negotiations for an offtake agreement or a strategic partner.
Investors have warmly greeted the news, which may result in alternative funding such as a cash injection, with shares up at midday to 1.3 cents.
The $15 million non-binding terms sheet is provided by Winance Investment LLC by way of the issue of convertible securities in the company.
Cape Lambert chairman Tony Sage said: “Securing this additional funding provides the company flexibility and allows us to continue to negotiate with potential strategic partners.”
An initial amount of $1 million will be available for immediate drawdown following execution of formal documentation.
Further drawdowns of $500,000 each are available upon full conversion of the notes from the previous drawdown subject to a cooling off period.
Winance CEO Cristina Nine said: “Winance is a private investment company, that seeks to create positive economic impact and long-term value for the companies we invest in.
“We have chosen to offer them not only financial support but as well solutions all along the way, access to an unparalleled network of advisors, strategic partners and customers.
“Our understanding and concept of being together on the same boat and sharing the same vision, the alignment with the management teams and efficient decision-making represents the core of our firm’s success.
“We bring significant resources and credibility and maintain a long-standing commitment to our principal values of honesty, integrity, and loyalty,” she added.
Paragon makes $500,000 payment
In another boost, the company has today confirmed that Paragon Mining SARL has made a US$500,000 payment to La Patience SPRL in respect to the Kipushi project.
Sage said: “We thank Paragon for making the payment and look forward to progressing the project with them.”