The equity funding provided by Mint will form a key part of facilitating the company’s broader growth strategy.
This includes a restart program for the Texas Silver Mine in Queensland aimed at commencing production in the short term.
Funds will also be used to continue exploration activities over the company’s existing projects, specifically further exploratory drilling at the Yanamina Gold Project in Peru and for potential new project acquisitions.
New funding option
Jadar executive director Adrian Paul said: “This equity capital source of funding provides the company with an entirely new funding option that delivers great flexibility and strengthens our financial position.
“It enables the company to implement its growth strategy in what is currently a transformational period for Jadar.”
The discretionary nature of the facility will allow the company to access funds only when they are needed.
Jadar may not require the full $10 million over the next two years and having the facility provides flexibility for the company to capitalise on its opportunities and progress assets, as required.
Key terms of the funding include:
- Jadar may elect at its sole discretion to drawdown funds in consideration for the issue of shares to Mint under the terms of the facility;
- Shares issued to Mint following a request for drawdown made by Jadar will be at a price equal to 90% of the 15-trading day average daily VWAP of Jadar’s shares;
- The number of shares to be issued to Mint will be equal to five times the average daily traded volume of shares on ASX for the 15 previous trading days prior to the date of issue;
- Jadar may drawdown up to $ 300,000 per month (the larger amount is also possible on conditions agreed by both the parties);
- The company will only be able to drawdown funds if the issue price is above a floor price of 3 cents per share;
- Mint shall not be entitled to own more than 9.99% of the shares in Jadar, either pursuant to the terms of the facility or via one or more on-market acquisitions, at any given time; and
- If Mint’s shareholding was to increase above 9.99%, then Mint would need to sell down part of its shareholding to ensure compliance with the terms of the facility.
Mint is a US-based investment group that specialises in servicing high net worth corporate and institutional clients globally.
The company was introduced to Mint through Valens International Pty Ltd, a Hong Kong-based private investment fund.