Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed PLD Corporation has executed a definitive net smelter royalty sale agreement with Resource Capital Funds (RCF) for a 1% net smelter royalty over the Admiral Bay zinc project, in Western Australia.
The transaction was worth $5-million, PLD said on Tuesday.
The net smelter royalty sale followed on from a share subscription agreement with RCF for some 68-million shares, at a price of 1c each to raise A$680 000.
The total proceeds from the RCF agreements were worth a combined A$7.34-million.
Meanwhile, PLD noted that the company had also agreed with the Mining Finance Fund to terminate a confidential term sheet relating to the sale of a 0.5% net smelter royalty over the Admiral Bay project, which had been worth $2.5-million.
PLD noted that the company had received strong interest from other mining finance funds, potential partners and institutional investors related to this particular net smelter royalty, as well as future funding.
It was expected that the total funding of some A$7.5-million would be used to finance the drilling and a staged prefeasibility study at the Admiral Bay project, as well as exploration at the Rocky Gully nickel/copper project, also in Western Australia.
PLD would apply for state and federal government grants, which could equate to some $2.5-million, or the Mining Finance Fund funds, while allowing the company not to incur any dilution.