BBX firms up funding for Brazilian exploration
PERTH (miningweekly.com) – ASX-listed BBX Minerals has secured an A$8-million standby equity funding facility with US-based institutional investment group LDA Capital to advance the construction of a metallurgical test plant and subsequent project development at its projects in Brazil.
The facility, which will have a 36-month term, will allow BBX to issue shares to LDA over the next three years at its own discretion, to receive funds of those shares.
A put option of up to A$8-million is in place, priced at 90% of the 15-day volume weighted average price of BBX’s shares following the exercise, with a minimum price set by the company.
The number of shares subject to a put option for a period is a maximum of ten times the average daily number of the company’s shares traded on the ASX during a 15-day period before its exercise.
A commitment fee of 2%, or around A$160 000 is also payable by applying 20% of each put option towards the payment, with at least A$80 000 within six months, with any balance due after 12 months.
LDA could hold a maximum interest of 9.95% in BBX.
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