PERTH (miningweekly.com) – Minerals developer Aus Asia Minerals has executed a $5-million funding facility with TCA Global Credit Master Fund to finance its Solok iron-ore project, in Indonesia, to full production.
The facility provided for the immediate draw-down of $375 000 as part of a secured revolving loan agreement. Further draw-downs of up to $5-million in total could be initiated by Aus Asia over the following six months, with an option to renew for a further six months.
The facility would have an 11% a year interest rate, and a one-off corporate banking and advisory fee of $1-million would be paid to TCA in the form of a convertible note, subject to a shareholder meeting, or the conversion of the note into shares, at a 20% discount to the five-day volume weighted average price on the date of notice, along with applicable interest.
The convertible note could be repaid at any time in cash.
Aus Asia told shareholders that the financing facility would allow the company to start production at Solok, where iron-ore would be shipped to Krakatau Steel, also in Indonesia. It was expected that the project would deliver up to 300 000 t over the next 12 months.