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ATEX Resources Announces US$15 Million Credit Facility with Strategic Shareholders
Toronto, Ontario--(Newsfile Corp. - July 12, 2023) - ATEX Resources Inc. (TSXV: ATX) ("ATEX" or the "Company") is pleased to announce that it has entered into a
About this update from Atex Resources Inc.
[{"type":"text","content":" Toronto, Ontario--(Newsfile Corp. - July 12, 2023) - ATEX Resources Inc. (TSXV: ATX) (\"ATEX\" or the \"Company\") is pleased to announce that it has entered into a credit agreement (the \"Credit Agreement\") for the establishment of a US$15 million unsecured credit facility (the \"Facility\") from a group led by existing strategic shareholders Firelight Investments LLC (\"Firelight\") a company controlled by Pierre Lassonde (an insider of the Company), Beedie Investments Ltd. (\"Beedie\") and other arm's length parties (collectively with Firelight and Beedie, the \"Lenders\"). The Facility will provide ATEX additional financial flexibility to fund the Company's ongoing work programs and provide general working capital. \"We are very grateful to have the continued support from our cornerstone shareholder through this Facility and the early exercise of warrants. We also would like to welcome Beedie Capital as our newest key stakeholder\" stated Raymond Jannas, CEO and President of the Company. \"This group of strategic shareholders have re-iterated their support and confidence in the Valeriano Project by agreeing to provide ATEX with a simple and flexible facility. With over $20mm in liquidity, we are extremely well positioned to execute our 2024 exploration drilling campaign, the completion of our upcoming updated resource for the Valeriano Project and other strategic initiatives.\" Facility Under the terms of the Credit Agreement, the Company will have access to up to US$15 million in two tranches, with the US$10 million first tranche expected to be advanced to the Company within the next week. Following the advancement of the first tranche, the Company may then draw an additional US$5 million under the Credit agreement in a second tranche, provided such funds are drawn at least three months prior to the Maturity Date (as defined below). All amounts outstanding under the Facility will bear interest at a rate of 6.0% per annum and all outstanding principal and accrued interest are due and payable to the Lenders on the two year anniversary of the Credit Agreement (the \"Maturity Date\"). In addition, the Company may repay any principal and interest outstanding under the Facility in advance without penalty. The Facility is unsecured. In connection with the Facility, the Company will issue non-transferable warrants (the \"Facility...