AIM-listed miner Savannah Resources has paused further draw-downs of funds from its facility with the Bergen Global Opportunity Fund for a period of 30 days as a result of general share market conditions for junior resources companies. A total of US$800,000 has been drawn down under the facility to date, and Bergen has retained all, and has not sold any of, the shares issued to it under the facility.
The right of pause which has been exercised by Savannah is a term of the facility agreement. Under the facility agreement, Savannah has the right to terminate the facility at any time and not to issue further shares on payment of a modest termination fee. In addition, the facility agreement contains contractual limitations on Bergen’s ability to dispose of shares following any subscription, as well as a prohibition on short selling. For clarity, Bergen has been a responsible corporate citizen and has complied with all of its obligations to Savannah.
“The facility has been carefully crafted with Bergen to provide flexibility in various market scenarios. The current pause is an example of the optionality afforded by the facility when market conditions change,” said Savannah CEO David Archer.
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