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Giyani Metals Signs Term Sheet for Convertible Loan Facility and Marketing Agreement with Traxys
OAKVILLE, Ontario, Jan. 28, 2019 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:WDG) (FRANKFURT:KT9) (WKN:A2DUU8) (“Giyani” or the “Company”) is pleased to annou
About this update from Giyani Metals Corp
[{"type":"text","content":" OAKVILLE, Ontario, Jan. 28, 2019 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:WDG) (FRANKFURT:KT9) (WKN:A2DUU8) (“Giyani” or the “Company”) is pleased to announce that it has entered into a non-binding term sheet with Traxys Africa Trading (Pty) Ltd. (“Traxys”) which sets out terms for an investment of US$1 million in the form of a secured convertible loan facility under which Traxys will have exclusive rights to market all of the direct shipping ore (“DSO”) manganese material processed and produced from the Company’s K.Hill and Otse reclamation projects in Botswana. Robin Birchall, CEO of the Company commented: “We are very excited to be partnering with a global leader in metals marketing and trading like Traxys. These terms underline the shared vision we have with Traxys in terms of the importance and market potential of battery-grade manganese. We expect the completion of the definitive agreements and final approvals will occur expeditiously, and once established, we will be in a position to use the proceeds received from the convertible loan to implement the reclamation projects at K.Hill and Otse within the framework of the recently announced environmental management plans (EMPs) at both prospects.” Key terms of the convertible facility terms settled with Traxys include: Principal amount of up to US$1 million, which will be available in two draws over a 12-month period Net proceeds from the sale of DSO by Traxys will be used to reduce the principal amount outstanding of the convertible facility Traxys will be granted a right of first refusal to provide additional debt financing for the K.Hill project in exchange for the right to market 100% of mined ore and electrolytic manganese metal produced from the K.Hill project Repayment of the convertible facility will be secured by the surface stockpile of ore at the K.Hill and Otse projects, and other personal property security The convertible facility will also bear interest at a rate equal to the aggregate of 10% and the US Dollar LIBOR per annum compounded quarterly and will mature 36 months from the date that all conditions precedent to draw down have been satisfied. The outstanding principal amount may be converted, in whole or in part, at the election of Traxys into common shares at a price per share equal to C$0.225. At the establishment of the convertible facility, Traxy...