Namibia Critical Metals has announced that it has completed a second draw-down of $100,000 pursuant to a draw-down equity financing facility with Alumina Partners, an affiliate of New York-based private equity firm Alumina Partners, LLC. entered into on August 24, 2020.
The Alumina facility is structured to provide Namibia Critical Metals with timely access to private placement financing as and when required.
Under the terms of the Investment Agreement, the Company has the right to draw down on the CD$5,000,000 facility through equity private placement tranches of up to CD$250,000 each.
Each tranche will be a placement of units, with each Unit comprising one common share and one-half of one common share purchase warrant.
The Units will be priced at a discount of 15% to 25% from the then most recent closing price of the Shares on the TSX Venture Exchange at the time of the applicable Company draw-down notice to Alumina.
The Warrants will be issued at a 40% premium over the market price of the Shares and will have a term of 24 months. There are no standby charges or other upfront fees associated with the Investment Agreement or any penalties for not drawing the full facility.
Each tranche of Units issued under the Investment Agreement will be subject to the acceptance of the TSX Venture Exchange, and the securities issued will be subject to the customary 4-month hold period.
A first tranche draw-down of $100,000 was completed concurrent with the execution of the Investment Agreement on August 24, 2020.
Pursuant to the second draw-down, the Company issued 451,977 units at a price of $0.22125 per unit for gross proceeds of $100,000. Each Warrant in this second tranche is exercisable into one additional common share at a price of $0.413. The proceeds from this second draw-down will be used for general corporate purposes.