TSXV-listed Alphamin Resources intends to raise approximately C$19.2 million, or US$15 million, by way of a non-brokered private placement to fund the continued development of its 80.75%-owned Bisie tin project in North Kivu in the Democratic Republic of Congo.
The private placement is intended to be completed with the company’s 44.86% shareholder, Tremont Master Holdings, for up to 76 800 000 common shares of Alphamin Resources at a price of C$0.25 per common share.
The number of shares being subscribed for by Tremont will be reduced in the event other investors participate in the placement, subject to a minimum subscription by Tremont of 44.86% of the placement.
Alphamin Resources is partnering in the development of the project with the Government of the Democratic Republic of Congo (DRC), which has a free carried interest of 5%, and the Industrial Corporation of South Africa (IDC), which has an interest of 14.25%.
Completion of the placement is subject to customary conditions, including the approval of the TSXV and all other necessary regulatory approvals and is expected to close on or about 18 June 2018, and will also be subject to a four month hold period.
Additional funds to be drawn down
Moreover, Alphamin Resources has also called the next drawdown pursuant to the previously announced credit facility of up to US$80 million, which is expected to be received in early June. In addition, the company intends to convert, subject to TSXV approval, US$3.396 million of debt which will become due to Sprott Private Resource Lending, Tremont and Barak Fund SPC concurrently with the draw in accordance with the terms of the credit facility, into 17 389 387 common shares at the same price per share as the private placement.
Additional equity funding from the IDC in the amount of approximately US$7.1 million has also been approved in the company’s 80.75% owned subsidiary, Alphamin Bisie Mining SA (ABM). The investment maintains the IDC’s 14.25% shareholding in ABM.