Business
Vendetta Signs Term Sheet for A$3.0M Funding Package to Complete Pegmont Acquisition
Vancouver, British Columbia--(Newsfile Corp. - April 12, 2019) - Vendetta Mining Corp. (TSXV:...
About this update from Vendetta Mining Corp.
[{"type":"text","content":"Vendetta Signs Term Sheet for A$3.0M Funding Package to Complete Pegmont AcquisitionVancouver, British Columbia--(Newsfile Corp. - April 12, 2019) - Vendetta Mining Corp. (TSXV: VTT) (the \"Company\" or \"Vendetta\") is pleased to announce that it has entered into a non-binding term sheet for a proposed financing transaction with Nebari Holdings LLC (\"Nebari\").The proceeds of the proposed financing are planned to be used to pay the final Pegmont Lead-Zinc property payment of A$3,000,000 and in doing so complete the Company's acquisition of a 100% interest in the Pegmont Lead-Zinc project.Michael Williams, Vendetta's President and CEO commented \"Upon completion, this financing will secure the balance of the 100% acquisition of the Pegmont Project while the recently announced private placement will provide the Company with sufficient working capital to execute the Company's goals for the next twelve months. We would like to thank Nebari for aligning with our corporate objectives to the satisfaction of both parties.This financing is also based on consideration of the cost of capital and eliminating further extension payments. With the completion of the PEA and 100% ownership the Company will be positioned to further advance the Pegmont project and deliver shareholder value.\"The material terms of the financing as set forth in the term sheet, include the following:Nebari will lend Vendetta the principal amount of US$2,556,818 for a term of 24 months.Interest is calculated at 6% plus 3-month LIBOR (currently 2.6%), with a floor of 2.5%. Interest will amortise for the first six months, following that cash repayment \"holiday, Vendetta can elect to pay cash interest between 50% and 100% of the interest quarterly, with any balance being capitalised and added to the principal amount of the loan, payable upon maturity.Vendetta can repay the loan with any accrued interest in whole or in part at any time without penalty.Upon repayment of the loan a repayment bonus will be due Nebari equal to 20% of the funded amount indexed to the increase in market capitalisation.The transaction is subject to Nebari completing confirmatory due diligence to their satisfaction, TSX-V exchange approval.The loan will be secured against the Companies' assets.About Nebari Nebari Holdings, LLC is an investment firm based in New York City focused on natural res...