Aquila Resources closes $20.75m financing
TORONTO (miningweekly.com) – TSX- and Frankfurt-listed Aquila Resources has closed a private placement and a silver purchase agreement for total funding of $20.75-million with Orion Mine Finance.
The development-stage company, which was focused on developing the 100%-owned Back Forty gold/zinc project, in Michigan's Upper Peninsula, said the proceeds from the transaction would be used to fund the next stage of development at Back Forty, including completing permitting activities, a feasibility study and further exploration.
Under the terms of the transaction, Aquila issued 26.92-million units to Orion – with each unit consisting of one common share and one-half of a three-year warrant to buy one common share at a strike price of $0.19 a share – at a price of $0.13 apiece for gross proceeds of $3.5-million.
Orion also bought 75% of Aquila's life-of-mine silver output from Back Forty for gross proceeds of $17.25-million, subject to a draw-down schedule. Orion would also pay an ongoing price of $4/oz of silver delivered under the streaming agreement.
Aquila would repurchase the existing royalties at Back Forty from Vale Exploration USA and HudBay Minerals for $4-million in cash and $1-million in cash and $225 000 in units – priced at $0.13 a unit – respectively.
Orion now held about 12.2% of the outstanding common shares in Aquila on a basic shares outstanding basis and 18.3% on a partially diluted basis. Orion also acquired the right to participate in any future equity or equity-linked placements to maintain its interest level in Aquila.
Orion also gained the right to nominate one individual for election to the board for 24 months and, thereafter, as long as Orion owned at least 10% of the outstanding common shares.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation