PERTH (miningweekly.com) – Diversified explorer Jadar Resources has secured a finance facility of up to A$10-million to develop a restart programme at the Texas silver mine, in Queensland.
Under a binding term sheet with US-based Mint Capital Advisors, Jadar could elect to draw down funds in consideration for the issue of shares to Mint at an issue price equal to 90% of the 15-day volume weighted average share price of Jadar shares.
Jadar could draw down up to A$300 000 a month, and can only draw down funds if the issue price is calculated to be above a floor price of 3c a share. Mint will not be entitled to own more than 9.99% of Jadar, and if the financier’s interest in the company exceeds this, it would need to sell down part of its shareholding.
Jadar told shareholders on Thursday that its entry into the financing facility was part of the company’s broader growth strategy, with the funds used to develop the restart programme for the recently acquired Texas silver mine, which would allow the company to start production in the short term.
Funds will also be used to continue exploration activities across Jadar’s existing projects, specifically at the Yanamina gold project, in Peru, and for potential new project acquisitions.
Jadar in August this year acquired a metals portfolio from liquidated Moreton Resources comprising five exploration tenements, one mining lease, and in-situ crushing, screening, stacking, treatment and refining facilities.
The Texas silver project encompasses the Twin Hills silver mine, as well as a number of advanced silver and polymetallic base metal exploration targets, with the project estimated to contain some 20.3-million ounces of contained silver.