SolGold's London Shares Rise on Funding Package Deal for Alpala Project
11 May 2020 - 6:43PM
Dow Jones News
By Adria Calatayud
London-listed shares in SolGold PLC rose Monday after the
company said it has agreed to a funding package of $100 million
with Franco-Nevada Corporation for its Alpala copper-gold project
in Ecuador.
The copper and gold mining company said it has also entered into
a $15 million bridge loan of immediately available funds with
Franco-Nevada as an initial advance prior to closing the financing
agreement. The advance provides SolGold with short-term funding at
an interest rate of 12% a year for a four-month period, with an
option to extend the maturity for another four months, and is
repayable with interest upon closing of the larger funding package,
it said.
Under the agreement, Franco-Nevada will receive a perpetual 1%
net smelter return interest from SolGold, calculated with reference
to net smelter returns from the Cascabel license in northern
Ecuador where the Alpala project is located, it said. SolGold said
it has an option to increase the size of the funding package by $50
million to a 1.5% net smelter return interest within eight months
from the date of the agreement.
SolGold shares in London at 0802 GMT were up 9% at 27.95 pence,
having earlier peaked at 30.25 pence.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
May 11, 2020 04:28 ET (08:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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