By Devika Patel
Knoxville, Tenn., Nov. 13 – Alphamin Bisie Mining SA arranged an $80 million five-year senior secured term credit facility, according to a press release from parent company Alphamin Resources Corp.
The loan was negotiated with lenders Sprott Private Resource Lending (Collector), LP, Barak Fund SPC Ltd. and Tremont Master Holdings and will settle in two tranches. The first $10 million tranche will settle initially. The additional $70 million will be available once certain conditions are met.
The loan will bear interest at a floating rate equal to the sum of 14% plus the greater of Libor and 100 basis points.
Interest will be capitalized until the earlier of the achievement of commercial production at the Bisie Tin Mine and 24 months following the initial advance date, repayable monthly thereafter.
There will be no principal repayments until March 31, 2020, with repayments thereafter in 11 equal quarterly instalments.
Beginning April 30, 2020, the loan will require a cash sweep of 30% of excess cash flow.
The company must pay a work fee of 2.9% payable as to 50% upon the initial advance and the balance upon the first subsequent advance.
The company will issue $1.77 million of bonus shares upon the later of the initial advance and the completion of at least $50 million of equity financing, and $2.23 million of bonus shares will be issued pro rata on subsequent advances.
A termination payment is due in certain circumstances. The payment will not exceed the value of the work fee and bonus shares not previously paid.
Proceeds will be used for the construction of the Bisie Tin Mine.
The gold, silver and polymetallic explorer is based in Vancouver, B.C.
| Issuer: | Alphamin Bisie Mining SA
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| Issue: | Senior secured non-revolving term credit facility
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| Amount: | $80 million
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| Maturity: | Five years
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| Coupon: | 14% plus the greater of Libor and 100 bps
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| Investors: | Sprott Private Resource Lending (Collector), LP, Barak Fund SPC Ltd. and Tremont Master Holdings
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| Announcement date: | Nov. 13
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| Distribution: | Private placement
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