Dual-listed Crusader Resources on Tuesday announced that shareholder Stephen Copulos had agreed to subscribe for an additional A$1-million worth of convertible notes to assist with the Brazil-focused junior’s immediate funding requirements.
Crusader had until the end of this month to raise additional funding to meet its short-term general working capital requirements.
The additional convertible notes have been subscribed for as part of the larger investment round announced on November 5, and December 27, 2018. A total of A$2.4-million has now been raised by the convertible note raising, with A$1.5-million of this amount having been subscribed for by the Copulos Group.
Stephen Copulos is a related party of Crusader under the Aim rules as he is a former director within the last 12 months and a substantial shareholder.
In addition to additional convertible notes, the company has received firm commitments for a placement of 22.5-million shares at an issue price of A$0.01 each, to raise A$225 000. The subscribers for the placement shares are existing investors in the company who are not associates of the Copulos Group.
"Funding for junior exploration companies in the current market is extremely challenging. The willingness of the Copulos Group to provide funding for Crusader during this time is testament to the underlying value they have recognised in the company's assets, and in particular Borborema," said Crusader MD Marcus Engelbrecht.
Trading in the company’s shares remains suspended on the ASX and Aim.