Business
US$20m financing for a calcium carbonate project
US$20m financing for a calcium carbonate project.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n \n \n RNS Number : 5934E\n Anglo Pacific Group PLC\n 02 March 2020\n \n \n \n \n News Release\n \n \n \n \n \n 2 March 2020\n \n \n \n \n \n \n \n \n Anglo Pacific Group PLC\n \n \n US$20 million financing agreement in relation to a calcium carbonate project\n \n \n \n \n \n Anglo Pacific Group PLC (\"Anglo Pacific\", the \"Company\", the \"Group\") (LSE: APF, TSX: APY) is pleased to announce that, together with Orion Mineral Royalty Fund LP - Series 1 and Orion Mineral Royalty Fund LP - Overflow Series 1 (collectively \"Orion\"), it has entered into a financing agreement with Incoa Performance Minerals LLC and certain of its affiliates (\"Incoa\") (the \"Financing\") which will fund the construction of Incoa's calcium carbonate mine and associated infrastructure in the Dominican Republic as well as a processing facility located in Mobile, Alabama, in the United States of America. Incoa will produce high quality ground calcium carbonate to be marketed principally to the domestic US calcium carbonate market. High quality ground calcium carbonate is used as a functional filler agent in a variety of end-products, including sealants and caulks, adhesives, rubber and as an active ingredient in food and pharmaceutical products which primarily serve to supplement dietary calcium consumption products. \n \n \n \n \n \n The Financing is structured into two tranches, with Tranche 1 proceeds financing the project through construction and into production. Orion will fund Tranche 1 in full, and Tranche 1 funding is expected to close in Q1 2020.\n \n \n \n \n \n Anglo Pacific's US$20 million Tranche 2 commitment (the \"Anglo Pacific Tranche 2 Commitment\") follows construction completion when the operation is in production and generating cash flow, and will provide Incoa with additional capital to bring its ground calcium carbonate products to market. The Anglo Pacific Tranche 2 Commitment is subject to a number of conditions, including Incoa's successful construction and operation of the project. The Anglo Pacific Tranche 2 Commitment is expected to be funded in 2021. Under the terms of the Financing, Anglo Pacific is entitled to receive quarterly payments of approximately 1.23% of Incoa gross revenue following funding of the Anglo Pacific Tranche 2 Commitment. \n \n \n \n \n \n Anglo Pacifi...