PERTH (miningweekly.com) – Junior Alt Resources has executed a A$4.5-million funding package with Collins Street Value Fund to finance the final vendor payment for the Bottle Creek gold project, in Western Australia.

Alt in 2017 struck a deal to acquire the Bottle Creek project for three installments of A$500 000 each, and a final installment of A$4.5-million by the end of November 2020.

The funding secured from Collins Street would allow Alt to make the final payment well ahead of the due date.

“We are extremely pleased to have attracted funding to secure the Bottle Creek mining project. This asset is the backbone of the company’s resource base and is pivotal to the company’s mining ambitions,” said Alt executive director Andrew Sparke.

“The convertible note has been struck at very attractive terms for the company,” Sparke said, pointing out that the conversion price of the note represents a 47% premium to the five-day volume weighted average share price of the company’s current share price, prior to today’s announcement.

Under the terms of the agreement, Collins Street will subscribe for notes with a face value of A$5.4-million, for a payment of A$4.5-million, with Alt having the right to pay back half of the notes within 12 months of execution.

Within this period, Collins Street could also convert up to A$2.7-million of the notes into fully paid ordinary shares in Alt, at a price of 3.2c each.

During the second year of the agreement, Collins Street could convert any notes that have not already been converted, or paid back, into shares in Alt.

The issue of the notes will be subject to a number of conditions, including shareholder approval and the repayment or extinguishment of all debt facilities and current liabilities before the end of November 2019. The notes will also be subject to Alt being issued a mining permit for its Tim’s Find mining lease before the end of March next year, and Alt signing a toll treatment and mining contracting agreement for the project also before the end of March next year.