Alphamin Resources offering comprised a private placement of 89,141,841 units for gross aggregate proceeds of C$28.5 million and a non-brokered private placement of 85,856,643 units for gross aggregate proceeds of approximately $27.5 million.
In addition, Alphamin Resources converted US$1.215 million of debt due to Sprott Private Resource Lending (Collector), L.P and Barak Fund SPC, which arose in connection with the previously announced credit facility of up to US$80 million into 4,746,091 units.
The private placement was led by Sprott Capital Partners and Tamesis Partners LLP and the JSE placement was led by Nedbank.
Each unit comprises one common share of the company and one half of one common share purchase warrant.
Each warrant is exercisable to acquire one common share (warrant share) for a period of 36 months following the closing date of the respective offerings at an exercise price of C$0.40 per warrant share subject to adjustment in certain events.
The net proceeds of the offering will be applied towards the equity requirement for the continued development of Alphamin Resources’ Bisie tin project and for general corporate purposes.
The willingness of the lenders to accept fees in units demonstrates an alignment in objectives and commitment to the project.
The non-brokered private placement comprises a subscription for 84,256,643 units at the issue price by Alphamin Resources’ 44.65% shareholder, Tremont Master Holdings and a subscription for 1,600,000 units at the issue price by the Adansonia PE opportunities.
In addition, Alphamin Resources has drawn down US$10 milllion of the credit facility by meeting all of the conditions precedent for the initial draw.
Pursuant to an amendment to the credit facility, US$25 million will become available to the company under the credit facility following the satisfaction of certain additional conditions precedent, including, inter alia, the completion of the private placements described above.
Access to drawdown of the remaining $45 million of the credit facility will require satisfaction of additional conditions precedent, including, inter alia, an additional equity raise of US$7 million.
Alphamin Resources has raised a further US$6.6 million from the Industrial Development Corporation of South Africa (IDC).
As previously announced, the IDC has approval to invest US$13.7 million in the project to maintain it’s 14.25% shareholding in the company’s 80.75% owned subsidiary, Alphamin Resources Bisie Mining SA.
The remaining US$$7 million is expected to be subscribed for in the first quarter of 2018, subject to various corporate approvals.
Concurrently with the closing of the offering, the company also entered into an offtake agreement with Gerald Metals SA for a period of five years for 100% of the tin concentrate from the project.
Feature image credit: Alphamin Resources