ASX-listed Cape Lambert has executed binding documentation for an A$15 million finance facility with Winance Investment LLC.

Funds advanced under the Winance Finance Facility will be used for mining exploration purposes and for general working capital purposes

The Finance Facility is by way of the issue of convertible securities in the Company.

An initial amount of A$1.2 million is available for immediate drawdown, with this expected to occur shortly.

Further drawdowns of $500,000 each are available upon full conversion of the notes from the previous drawdown, subject to a cooling off period.

Further information on the Finance Facility will be contained in a notice of meeting to approve the Finance Facility, which will be sent to CFE shareholders shortly.

The initial $1.2 million tranche is made without shareholder approval, with conversion of initial tranche A notes ($480,000) unconditional and the conversion of initial tranche B notes ($720,000) subject to prior approval by CFE shareholders.

CFE relies upon its existing capacity under Listing Rule 7.1 to issue the initial tranche A notes.

Cristina Nine, CEO of Winance, comments:

“We are thrilled to welcome onboard Cape Lambert and we are looking forward to a developing and exciting journey ahead.

“This flexible financing solution fits their current financing needs very well on a long-term which will help the company to fund their future projects and investments.

“The solution is both cost-effective and flexible for the Company and its shareholders allowing them to reach their objectives and profitability.”