Unicorn Mineral Resources Plc (LON: UMR) has formally executed a £1.25 million unsecured loan facility with Electro Automation (Group) Limited, a company controlled by Chairman Paddy Doherty.
The facility is intended to support the proposed acquisition and initial development of the Klein Aub Copper Mine in Namibia, as well as working capital and general operating requirements.
The full £1.25 million is expected to be drawn once the Klein Aub acquisition documentation has been signed.
The loan carries an interest rate of 10% per annum, together with a 3% establishment fee of £37,500, and matures one year after the first drawdown.
At the lender’s request, the principal, interest and establishment fee may be converted into Unicorn shares on redemption at a 10% discount to the 30-day volume-weighted average share price, subject to any required Takeover Panel clearance.
As Electro Automation is controlled by Unicorn’s chairman and significant shareholder, the agreement constitutes a material related-party transaction. Independent directors said they consider the terms fair and reasonable for shareholders.
Unicorn said execution of the facility secures the funding needed to advance Klein Aub once the acquisition is completed.
For further information, please visit www.unicornmineralresources.com
