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Desert Star Resources Announces $20 Million Convertible Term Debt Loan with Wheaton Precious Metals; Increases Total Financing Package to C$100 Million
VANCOUVER, British Columbia, Oct. 31, 2017 (GLOBE NEWSWIRE) -- Desert Star Resources Ltd. (TSX-V:DSR) (“Desert Star” or the “Company”) is pleased to announce it
About this update from Kutcho Copper Corp
[{"type":"text","content":"VANCOUVER, British Columbia, Oct. 31, 2017 (GLOBE NEWSWIRE) -- Desert Star Resources Ltd. (TSX-V:DSR) (“Desert Star” or the “Company”) is pleased to announce it has entered into a non-binding Term Sheet for a C$20 million Subordinated Secured Convertible Term Debt Loan (the “Term Debt Loan”) with Wheaton Precious Metals Corp. (TSX:WPM) (NYSE:WPM) (“Wheaton”) which, in addition to the proposed Early Deposit Precious Metals Purchase Agreement (“PMPA”) announced on August 10, 2017, results in a total financing package exceeding C$100 million. The expanded financing package with Wheaton provides capital towards the acquisition, exploration and development of the high grade Kutcho copper-zinc-silver-gold project (“Kutcho Project”) as follows: Up to C$20 million convertible term debt loan and participation of up to C$4 million in an equity financing to fund the acquisition (the “Acquisition”) of the Kutcho Project from Capstone Mining Corp. (“Capstone”) previously announced on June 15, 2017. US$7 million advanced on an early deposit basis under the PMPA to fund completion of the feasibility study and permitting-related expenditures on the Kutcho Project. US$58 million advanced as part of the PMPA towards funding the construction of the Kutcho Project. “The increased proposed financing package with Wheaton represents another significant milestone towards the completion of the Acquisition and development of the high grade Kutcho Project,” stated Vince Sorace, President and CEO of Desert Star. “Wheaton will be a strong technical and financial partner for Desert Star as we move aggressively forward in expanding the Kutcho Project and towards a production decision.” “The Kutcho Project is ideally suited for Wheaton’s early deposit stream structure as a source of financing,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “While Desert Star’s recent prefeasibility study shows that this project already has very good economics, we also believe there is excellent potential for expansion and exploration.” Macquarie Capital Markets Canada Ltd. is acting as lead agent with regard to Kutcho Project Acquisition financing. Subordinated Secured Convertible Term Debt Loan Principal Amount Up to C$20,000,000 fully backstopped by Wheaton – C$10,000,000 of the Term Debt Loan is available for syndication. ...