Cape Lambert Resources Limited (ASX:CFE) (FRA:HM5) has enhanced financial flexibility by executing binding documentation for a $15 million finance facility with Winance Investment LLC.
Funds advanced under this facility with the independent global firm specialising in corporate financing, will be used for Cape Lambert’s exploration and for general working capital purposes.
Cape Lambert chairman Tony Sage said that securing the funding provided the company with flexibility as it advanced its battery metals projects.
He said the funds also allowed for continued negotiation with potential strategic partners.
The Winance Finance Facility is by way of the issue of convertible securities in Cape Lambert.
An initial amount of $1.2 million is available for immediate drawdown and this is expected to occur shortly.
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 and founder Cristine Nine said: “We are thrilled to welcome onboard Cape Lambert and we are looking forward to a developing and exciting journey ahead.
“This flexible financing solution fits their current financing needs very well on a long-term which will help the company to fund their future projects and investments.
“The solution is both cost-effective and flexible for the company and its shareholders allowing them to reach their objectives and profitability.”
The initial $1.2 million tranche is made without shareholder approval.
Conversion of initial tranche A notes valued at $480,000 is unconditional and the conversion of initial tranche B notes valued at $720,000 is subject to prior approval by Cape Lambert shareholders.
The company relies upon its existing capacity under Listing Rule 7.1 to issue the initial tranche A notes.
Winance works with Kapital Global Advisors
Winance, which focuses on small and mid-sized listed companies to help them secure funding needed for growth, worked on the Cape Lambert transaction with Kapital Global Advisors Limited.
Kapital Global is Winance’s exclusive and strategic partner for Australia and collectively the two focus on ASX-listed and private opportunities in the Asia-Pacific region.
A UAE-based advisory firm, Kapital is led by Kapil Singh and focuses on Asia Pacific, North & South America, Europe and Africa.