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Alphamin Resources Resources Completes Offering of US$31 Million of Shares for Prepayments of Debts and Signs Amended Credit Facility Agreement
GRAND BAIE, Mauritius, May 14, 2020 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the “Company”) is pleased to announce th
About this update from Alphamin Resources Corp.
[{"type":"text","content":" GRAND BAIE, Mauritius, May 14, 2020 (GLOBE NEWSWIRE) -- Alphamin Resources Corp. (AFM:TSXV, APH:JSE AltX, “Alphamin” or the “Company”) is pleased to announce that it has completed its previously announced offering of common shares pursuant to which an aggregate of 312,319,539 common shares were issued (approximately US$31.01 million) (the “Offering”). The Company issued for cash on a non-brokered private placement basis 100,819,541 common shares at a price of C$0.14 for gross proceeds of approximately C$14,114,736 (approximately US$10.01 million). Of this amount, 60,428,571 common shares (approximately US$6 million) were acquired by the Company’s major shareholder, Tremont Master Holdings (“Tremont”). Directors and officers of Alphamin and their associates and affiliates acquired a further 4,673,755 common shares. The Company also completed concurrent shares for debt transactions of C$29,610,000 (approximately US$21 million) that resulted in the issuance of 211,499,998 additional common shares at a deemed price of C$0.14 per share. Of this amount, 191,357,143 common shares were issued to Tremont for the assignment and transfer by Tremont to Alphamin of US$19 million of the amount owning to Tremont under the senior secured credit facility (the “Credit Facility”) made to Alphamin’s 80.75% subsidiary, Alphamin Bisie Mining S.A. (“AFM”). A further 20,142,856 common shares were issued to arm’s length third-party creditors of AFM under similar debt settlements. Tremont, based in Grand Baie, Mauritius, acquired direct ownership of 251,785,714 common shares under the Offering. Prior to the Offering, Tremont directly owned 420,881,510 common shares and warrants exercisable to acquire a further 100,350,245 common shares of the Company. Following the Offering, Tremont now owns 672,667,224 common shares, representing approximately 57.09% of the number of issued and outstanding common shares, as well as warrants to acquire up to a further 100,350,245 common shares of the Company. Assuming the exercise of all warrants by Tremont only and no other exercises, Tremont would own up to approximately 60.45% of the number of common shares of the Company on a partially diluted basis. Tremont has advised that they have acquired the common shares in the Offering for investment purposes and may, depending on the market and other conditions, incre...