Business
Debt Financing and Potential Iceland Main Listing
Debt Financing and Potential Iceland Main Listing.
About this update from Amaroq Ltd.
[{"type":"text","content":"\n \n \n \n \n \n \n \n (\"Amaroq\" or the \"Corporation\" or the \"\n \n Company\n \n \")\n \n \n \n US$49.5m Debt Financing and Potential Main Market Listing in Iceland\n \n \n \n \n US$49.5m cash injection to bring forward production and cash flow generation at Nalunaq\n \n \n \n \n \n \n \n \n TORONTO, ONTARIO - 28 March, 2023 - Amaroq Minerals Ltd. (AIM, TSXV,\n NASDAQ First North: AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets covering an area of 7,866.85 km2 in Southern Greenland, is pleased to announce that\n it has agreed non-binding heads of terms, subject to final documentation, for US$49.5 million in debt financing (the \"Financing\") to accelerate production and cash flow generation at its cornerstone Nalunaq gold development project.\n \n \n \n \n \n \n Highlights\n \n \n \n ·\n Amaroq has signed non-binding term sheets for a US$49.5 million senior secured financing package consisting of:\n \n \n o \n US$18.5 million Senior Debt Revolving Credit Facility (\"RCF\") with Icelandic banks Landsbanki and Fossar Investment Bank, with a two year term and interest at the Secured Overnight Financing Rate (SOFR) plus 950bps. The RCF has a 2% arrangement fee and a 0.4% commitment fee on unutilised amounts.\n \n \n o \n Up to US$21 million Syndicated Convertible Notes (\"Convertible Note\") with an affiliate of ACAM LP, JLE Property Ltd, Livermore Partners and First Pecos with a four year term, payment-in-kind interest of 5% per annum and a conversion price of 42 pence/share.\n \n \n o \n ACAM LP's main investors are the majority ultimate beneficial owners of GCAM LP.\n \n \n o \n US$10 million, two year Cost Overrun loan by JLE Property Limited on the same terms as the Convertible Note, plus a 2.5% commitment fee on unutilised amounts, to insure against any potential unexpected cost increases.\n \n \n ·\n The Financing, together with existing capital, is expected to enable the transition from the bulk sample stage to trial mining, processing and production of gold doré on site at Nalunaq in a staged approach, ahead of full-scale production.\n \n \n o \n The Company intends to utilise the Financing to accelerate the phased construction and ramp-up of the 300tpd processing plant and associated infrastructure contemplat...