logo-loader
viewAmerican Pacific Borates Ltd

American Pacific Borate and Lithium signs US$45 million project financing deal for Fort Cady

The financier is a New York based private equity fund that has completed detailed due diligence.

American Pacific Borate & Lithium Ltd - American Pacific Borate and Lithium signs US$45 million project financing deal for Fort Cady
The company’s shares are trading about 13% higher intra-day, at 30 cents

American Pacific Borate and Lithium Ltd (ASX:ABR) has executed an indicative term sheet for US$45 million project financing with Amvest Capital Mining Opportunities for the Fort Cady Borate Project.

The New York based private equity fund will fund Phase One A of the California-based borate project.

Amvest’s financing facility will comprise of a US$37 million construction term loan and a US$8 million cost overrun facility.

In addition, Amvest has agreed to subscribe for US$2 million of ABR convertible notes.

Importantly, the new financing deal is very significant in ABR’s progress to be in construction by the end of the year on a fully permitted, fully financed basis.

Location of the Fort Cady and Salt Wells Projects in the US

ABR chief executive officer and managing director Michael Schlumpberger said: “We are delighted to have signed a term sheet with a specialist mining New York-based investor for a facility to substantially debt fund the first phase of our Fort Cady Borate Project.

“The convertible note and term sheet confirm our view that we have a very exciting project with exceptional financial metrics, which will produce two commodities with compelling market dynamics.

“Importantly, our focus continues to be on completing our engineering to enable the commencement of construction in the current calendar year.”

Minimal equity dilution

The equity upside for the proposed debt is 10 million ordinary shares and 15 million options at 30 cents - effectively representing about 8% of ABR.

This demonstrates a path to financing Stage One A of the mine and path to production with minimal equity dilution.

Quick facts: American Pacific Borates Ltd

Price: 0.275 AUD

ASX:ABR
Market: ASX
Market Cap: $57.34 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of American Pacific Borates Ltd named herein, including the promotion by the Company of American Pacific Borates Ltd in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

American Pacific Borate & Lithium shares ‘incredibly cheap’, according to...

American Pacific Borate & Lithium Ltd (ASX:ABR) is developing the Fort Cady borate and lithium project in California, which has a 120.4-million-tonne deposit at 6.5% boron oxide.   Orior Capital analyst Simon Francis has completed a new report on ABR where he notes the...

on 28/3/19

2 min read