PERTH (miningweekly.com) – Ruby miner Mustang Resources has secured A$8.5-million in funding from US institutional investor Arena Investors under a convertible note facility.
The financing will be drawn down in four tranches, with the first A$1.7-million received on the signing of a convertible note deed. A second tranche of A$1.7-million will be made available subject to shareholder approval of the notes, with the third and fourth tranches consisting of A$2.55-million each.
Mustang MD Christiaan Jordaan said that the funding arrangement marked another key step in the company’s growth as it continued to recover high-quality rubies from its upgraded processing plant and artisanal development programme at the Montepuez project, in Mozambique, where the total ruby inventory now stood at 132 000 ct.
“This facility ensures we are fully funded until the first closed-bid tender of our rubies in October this year, and provides us with the ability to maximise the number of rubies for sale in October.
“To have obtained the funding from an institution of Arena’s size and standing is a significant vote of confidence in Mustang and our Montepuez ruby project.”
Jordaan said that the milestone was also achieved in a way that would minimise dilution to shareholders.