Business
Republic Investment Financing Restructured
Republic Investment Financing Restructured.
About this update from Panthera Resources Plc
[{"type":"text","content":"\n \nRNS Number : 3195I Panthera Resources PLC 08 August 2019 \n\n8 August 2019\nPanthera Resources Plc\n(\"Panthera\" or \"the Company\")\nRepublic Investment Management (RIM) Financing Restructured \n \nPanthera Resources plc (AIM: PAT), the gold exploration and development company with assets in India and West Africa, is pleased to announce it has negotiated a restructuring of the previous agreed financing package with RIM, which will result in an immediate capital injection of £500,000 at 10 pence per share. The Company has agreed to issue 5,000,000 New Ordinary Shares to RIM and its co-investors.\nHighlights\n· The previously agreed RIM financing will be restructured to split the Tranche 3 capital injection into two separate investment tranches.\n· Tranche 3A will be invested immediately for gross proceeds of £500,000 at 10 pence per share. The payment timing for Tranche 3B will be made (as previously agreed) upon receipt of approvals to recommence exploration at the Bhukia JV project in India. Tranche 3B is now to be priced at a 15% discount to the 20 day VWAP at that time.\n· This financing is a prudent move to sure up the company's balance sheet in response to delays to the permitting of the Company's Bhukia JV in India. \nGeoff Stanley, Managing Director said \"Panthera Resources has worked diligently to negotiate multiple financing options that are integrated with its project development requirements, particularly as they relate to India. This successful financing is an excellent example of the success that can be achieved with supportive shareholders who share the Company's vision for value creation.\"\nFunding Context\nThe RIM Tranche 3 financing was originally intended to provide initial funding for the recommencement of exploration drilling at the Bhukia JV upon grant of the prospecting licence (PL) and necessary environmental and forestry permits. The original Tranche 3 size was A$2.7m (£1.5m). As the PL grant has been further delayed, but protected by a Court Order, Panthera's capital budgeting has been negatively affected, necessitating this capital raise. \nAdditionally, subsequent to the original RIM financing, Panthera finalised a transaction with Galactic Gold Mining Pvt Ltd (Galaxy) in December 2018...