Alba Mineral Resources plc (AIM: ALBA), the diversified mineral exploration and development company, is pleased to announce that it has entered into a convertible securities issuance deed (the “Agreement”) with a U.S.-based institutional investment fund managed by Bergen Asset Management, LLC
To provide up to £1,054,500 of funding in the form of the issuance by the Company of unsecured zero coupon convertible securities (the “Convertible Securities”).
Highlights
· Unsecured financing in the amount of £767,000 (which can be increased by mutual consent to up to £1,054,500 ), provided by U.S. based institutional fund, Bergen Global Opportunity Fund, LP (“Investor”).
· Financing will be structured by way of the issue by the Company of zero-coupon, unsecured Convertible Securities, the initial tranche of which will be redeemable at a premium to the subscription price.
· The Investor will have the right to convert the Convertible Securities into Alba ordinary shares (“Shares”) based on the volume-weighted average price (“VWAP”) of Alba shares during a specified period prior to conversion or, in respect of a limited amount of Convertible Securities, at £0.001625 .
· The financing is structured in such a way as to provide Alba with funding at regular intervals over the next 18 months, allowing the Company to fund key value-enhancing work activities across its mining portfolio. Such further funding will be subject to the fulfilment, at each funding stage, of certain conditions and warranties by the Company.
George Frangeskides, Executive Chairman of Alba, commented :
“This financing provides Alba with a significant funding source for the year ahead. In traditional private placements, placing shares are issued up-front and therefore the full dilutionary impact occurs on the closing of the placing. By contrast, the structure of this financing package provides the Company with an opportunity to increase its share price during the course of this year which, if successful, would mean that the shares would be issued at higher prices, resulting in less dilution for existing shareholders.”
“The terms of this financing incorporate a significant degree of flexibility for Alba, including the ability to pause the funding tranches and even to terminate the financing early. This means that the Company has secured not only an important funding stream, but also has the ability to draw a line under the financing as and when our divestment strategy comes to fruition and generates sufficient funds by itself to enable us to drive our key projects forward without the need for external financing.”
Link www.share-talk.co.uk/announcements/rns
