Business
£2 million Financing Facility
£2 million Financing Facility.
About this update from Power Metal Resources Plc
[{"type":"text","content":"\n \n 13 August 2014\n\n Sula Iron & Gold plc \n\n (\"Sula\" or the \"Company\") \n\n £2 million Financing Facility \n\nSula Iron & Gold plc (AIM:SULA), the exploration and development company\nfocused on iron ore and gold in Sierra Leone, is pleased to announce that it is\nhas secured a £2 million, five year Equity Financing Facility (\"EFF\") with\nDarwin Strategic Limited (\"Darwin\"). In conjunction with the EFF, the Company\nhas issued 1,700,000 warrants to Darwin, further details of which are set out\nbelow.\n\nThe EFF agreement with Darwin provides Sula with a facility of up to £2.0\nmillion which (subject to certain limited restrictions) can be drawn down at\nany time over the next five years. The timing and floor subscription price of\nany draw down is always at the complete control and sole discretion of the\nCompany. There are no penalty fees payable for not using the facility.\n\nSula is under no obligation to make a draw down and may make draw downs at its\ndiscretion, up to the total value of the EFF, by way of issuing subscription\nnotices to Darwin. Following delivery of a subscription notice, Darwin will\nsubscribe and the Company will allot and issue to Darwin new ordinary shares in\nSula ('Ordinary Shares').\n\nThe subscription price for any Ordinary Shares to be subscribed by Darwin will\nbe set with reference to the average of the three lowest closing bid prices of\nSula in the period following the issue of the subscription notice provided the\nrelevant pricing period, as set by the Company, is between three and 15 days.\n\nSula is able to specify in each subscription notice a minimum price below which\nOrdinary Shares will not be issued to Darwin. The Company will have the right\n(with the consent of Darwin) to modify that minimum price at any time during\nthe relevant pricing period.\n\nThe number of Ordinary Shares which may be issued under any individual\nsubscription notice may be up to the lower of 25 per cent of the Company's\nissued share capital following completion of the relevant subscription, or four\ntimes the average daily trading volume of Sula's Ordinary Shares over the 15\ntrading days preceding the issue of the relevant subscription notice. This may\nbe reduced in certain circumstances, including where the minimum price is not\nmaintained.\n\nThe maximum amount of an individual s...