Aim-listed Tertiary Minerals has secured up to £622 000 to fund the planned exploration programmes on its recently acquired Pyramid Gold and Paymaster polymetallic projects, in Nevada, US.
The company entered into a convertible securities issuance deed with US-based Bergen Global Opportunity Fund in connection with an issuance of zero coupon convertible securities having a nominal amount of up to £653 000.
“The current market for natural resource companies remains very challenging and we are therefore pleased to have secured a flexible method of financing as opposed to a straight equity raise which, in the current market, often come at a large discount to the share price and would be highly dilutive,” said MD Richard Clemmey.
The convertible securities would be issued in tranches, with the initial convertible security having a purchase price of £232 000 and a nominal value of £263 000.
Each of the convertible securities would have a term of 24 months.
"The staged funding now enables the company to move ahead with exploration and development on our two new exciting projects, Pyramid and Paymaster,” said Clemmey.