Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Aim-listed African Potash has secured up to $3.75-million in convertible securities to support the development of its Lac Dinga potash project, in the Republic of Congo.
The exploration company entered into a convertible securities issuance deed with Bergen Opportunity Fund, an institutional investment fund managed by New York-based Bergen Asset Management.
“With [this investment], we are well set to advance our Lac Dinga potash project, [where] we recently commenced our maiden drilling campaign in order to improve our understanding of the asset, and the results from this will provide a basis for determining future exploration programmes,” African Potash CEO Edward Marlow said in a statement on Friday.
“With a highly prospective licence, drilling under way, and funding secured to implement future exploration, this is an exciting development for African Potash,” he added.
The investment would be payable in four tranches, starting with the release of $830 000 “shortly” to provide working capital and to fund future exploration programmes.
Each of the three subsequent convertible security tranches of between $500 000 and $1-million would be issued 90 days after the date of issuance of the previous tranches.
The convertible securities would have a term ending February 2017.
African Potash issued 1.53-million shares to Bergen for a funding commencement fee, in addition to 4.8-million shares.
Further, the company agreed to issue and allot 1.4-million new shares in lieu of payment to an adviser to the company.