Business
Global Minerals Arranges $2 Million Loan Financing
Funds will be used for the development of the Streiborna Vein Deposit VANCOUVER, July 9 /CNW/ - G...
About this update from District Metals Corp.
[{"type":"text","content":"\n\n\n\nFunds will be used for the development of the Streiborna Vein Deposit\n\n\nVANCOUVER, July 9 /CNW/ - Global Minerals Ltd. (TSX: CTG) (FRANKFURT:\nDFP) is pleased to announce that it has engaged Investec Bank (UK) Limited\n("Investec") to provide a convertible promissory note of up to US$2,000,000.\nInvestec's commitment is subject to completion of due diligence and formal\ndocumentation and Investec's final internal approvals. This strategic funding\nwill provide Global Minerals with timely working capital to meet its\nshort-term needs as it pursues opportunities for long-term financing.\n\n\nThe loan will be used by Global Minerals primarily for expenditures\nrelated to its Strieborna project. The proceeds will allow the Company to part\nfinance the pre-feasibility study and permitting related to the Streiborna\npolymetallic project in Slovakia, and to provide working capital.\n\n\nThe Company entered into a Mandate Letter and Indicative Term Sheet with\nInvestec, to finalize the convertible loan facility in the principal amount of\nup to US$2,000,000. The loan will bear interest at the rate of USD Libor plus\n10% per annum, with interest payable quarterly, in arrears. It is expected\nthat the facility will be repaid in full upon the earlier of any capital\nraising by Global Minerals in the 12 months following the date of the facility\nagreement or first drawdown of a senior project finance facility. Investec\nwill have the right to exchange all or part of the outstanding principal under\nthe facility into common shares of Global Minerals by way of detachable\nwarrants, at a conversion price equal to 120% of the average of the\nvolume-weighted daily closing price of Global Minerals' shares on the TSX\nVenture Exchange for the 20 trading days preceding and including the date of\nacceptance of the Term Sheet. The conversion terms are subject to Exchange\nacceptance. If Global Minerals' common shares trade at a price 180%, 200% or\n220% greater than the conversion price for 20 consecutive trading days, the\nCompany will have the option to force exercise of the 25%, 50% and 25% of the\nwarrants, respectively.\n\n\nInvestec will receive an arranging fee of 5% of the debt facility payable\nin cash or, subject to the acceptance of the TSX Venture Exchange, the\nequivalent value in the Company's common shares on the e...