TSXV-listed Alphamin Resources has completed a US$25 million draw-down under its previously announced credit facility of up to $80 million.
In addition, Alphamin Resources converted $3.396 million of debt due to Sprott
Private Resource Lending, L.P., Barak Fund SPC and the company’s 44.86% shareholder,
Tremont Master Holdings, in connection with the Credit Agreement into 17,389,387 common shares of the Company at a price of C$0.25 per share.
The shares issued pursuant to the debt settlement are subject to a minimum hold period of four months and one day from the date of issuance, expiring on October 8, 2018.
The Debt Settlement remains subject to final approval of the TSX Venture Exchange.
On March 28, 2018 a Revised Mining Code was published in the official gazette in the
Democratic Republic of Congo (DRC), becoming law following the signing in by the president of DRC, Joseph Kabila, on March 9, 2018.
Based on the Revised Mining Code, it appears that the company could be subject to a higher royalty rate of 3.5% payable to DRC, up from 2%, and potentially higher taxes, as a result of reduction in tax deductible expenses.
Alphamin Resources notes that article 220 of the Revised Mining Code states that companies developing projects in infrastructure poor provinces, such as Alphamin, may be able to take advantage of certain exemptions.
Alphamin Resources is currently in the process of assessing the Revised Mining Code and the applicable regulations, and their impact on Alphamin.