Ivanhoe’s Kipushi zinc mine in the DRC officially reopens
The restart marked exactly a century since the mine first went into production.
African Potash (AIM:AFPO) (LON:AFPO) said Friday it has secured up to $3.75 million in financing for its Lac Dinga potash project through the issuance of zero-coupon convertible securities to an investment fund managed by New York-based Bergen Asset Management.
The first of four portions of the investment, with a nominal value of $830,000, “will be issued shortly” to provide working capital and support the growth of future exploration programs, the company said in a statement.
Each of the three other tranches, valued at between $500,000 and $1 million, will be issued 90 days apart.
The convertible securities will have a term ending on Feb. 7, 2017.
CEO Edward Marlow said that the financing makes his company, which focuses on sub-Saharan potash assets, “well set” to advance the Lac Dinga project in the Republic of Congo.
“With a highly prospective licence, drilling underway, and funding secured to implement future exploration, this is an exciting development for African Potash,” he said.
African Potash said it will have the right to repurchase the securities for cash at 105% of their nominal value without fee or penalty if done within a “certain redemption period,” which it did not define.
The company said it will have the right to end the deal at any time and not issue the remaining securities if it pays a “modest” termination fee. It stopped short of specifying the amount.
African Potash shares fell 7.14% on Friday to close at 3.25 pence.
Comments
Bob
AFRICAN POTASH secures funding, and it shows two white guys shaking hands.
That pretty much says it all.