("Amaroq" or the "Corporation" or the "Company")
Highlights
- Amaroq has signed non-binding term sheets for a
US$49.5 million senior secured financing package consisting of:
US$18.5 million Senior Debt Revolving Credit Facility ("RCF") with Icelandic banksLandsbanki and Fossar Investment Bank , with a two year term and interest at the Secured Overnight Financing Rate (SOFR) plus 950bps. The RCF has a 2% arrangement fee and a 0.4% commitment fee on unutilised amounts.-
Up to
US$21 million Syndicated Convertible Notes ("Convertible Note") with an affiliate ofACAM LP ,JLE Property Ltd ,Livermore Partners and First Pecos with a four year term, payment-in-kind interest of 5% per annum and a conversion price of42 pence /share. -
ACAM LP's main investors are the majority ultimate beneficial owners of
GCAM LP . US$10 million , two year Cost Overrun loan byJLE Property Limited on the same terms as the Convertible Note, plus a 2.5% commitment fee on unutilised amounts, to insure against any potential unexpected cost increases.
- The Financing, together with existing capital, is expected to enable the transition from the bulk sample stage to trial mining, processing and production of gold doré on site at Nalunaq in a staged approach, ahead of full-scale production.
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The Company intends to utilise the Financing to accelerate the phased construction and ramp-up of the 300tpd processing plant and associated infrastructure contemplated in 2020. This decision is enabled by positive results on the Nalunaq orebody, published in
December 2022 , with improved grade at Nalunaq, confirmation of the DoleriteDyke Model for predicting high-grade mineralisation and Halyard's third-party engineering study completed in 2021. The Company intends to leverage its already engineered and manufactured components of the processing plant that have been purchased and have a carrying value ofUS$8.5 million . - Amaroq retains a prudent and diligent approach to commencing trial mining activities at Nalunaq, and plans to derisk the project in a staged approach, including rehabilitating existing mining areas, extending exploration activities and converting current mineral resources ahead of commencing full-scale production.
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A Letter of Intent has been agreed with
THYSSEN SCHACHTBAU GMBH on the underground development and Halyard will be the partner in the staged construction of the processing plant. Halyard is very familiar with the project as the partner for the third-party engineering study for the processing plant and surface infrastructure, and contractors of choice for the next development phase of Nalunaq. - Amaroq will finalise the Financing's legally binding documentation and expects to be in a position to sign binding documents within the next three months.
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Alongside the Financing, with a defined path to cashflow, and strong Icelandic investor support, Amaroq today announces its intention to explore the possibility of a main market listing on
Iceland 's Nasdaq Exchange and will update on progress and timing in due course. -
Additionally, further to its announcement on
19 January 2023 , Amaroq continues to progress towards the closing of the joint venture transaction withGCAM LP (the "GCAM Transaction"), announced on10 June 2022 , in whichGCAM LP subscribed£18,000,000 (US$22,000,000 ) for shares in the strategic mineralsJV Gardaq ApS , representing 49% of its issued shares. Written approval by the Government ofGreenland pursuant to section 88(1) of the Mineral Resources Act of the transfer of the Initial JV Company Licences has been received and those licences have been transferred by Nalunaq A/S toGardaq ApS . The Company expects to satisfy the remaining escrow conditions, and to complete the GCAM Transaction, before30 April 2023 .
Eldur Olafsson, CEO of Amaroq, commented:
"We are very pleased to have successfully arranged this
The Financing will enable the transition of activities at Nalunaq from the mining of the Bulk sample and potential toll treatment of ore to the extension of exploration activities, delivering a mineral reserve, and commencing trial mining and ore processing on site prior to starting commercial production.
I would like to thank our investors and debt funding partners for the confidence they have shown in Amaroq and Nalunaq, our flagship gold asset in
Related Party Transaction
Following completion of the GCAM Transaction,
As such, the elements of the Financing with
The Independent Directors, being the Amaroq Directors other than
Enquiries:
Eldur Olafsson, Executive Director and CEO
+354 665 2003
eo@amaroqminerals.com
+44 (0)7713 126727
ew@amaroqminerals.com
Simon Mensley
+44 (0) 20 7710 7600
+44 (0) 20 7886 2500
SI
+44 (0) 1483 413500
Camarco (Financial PR)
+44 (0) 20 3757 4980
For Company updates:
Follow @Amaroq_minerals on Twitter
Further Information:
About
Inside Information
This announcement contains inside information for the purposes of Article 7 of the
This information is provided by RNS, the news service of the
https://news.cision.com/amaroq-minerals-ltd/r/debt-financing-and-potential-iceland-main-listing,c3741758
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