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- American Pacific Borates (ABR) has initiated a US$30 million (almost A$40 million) drawdown of renegotiated financing for the construction of a Southern Californian mine
- ABR entered a binding term sheet in June 2020 to raise the US$30 million via a convertible note
- The funds raised will go towards construction at the Fort Cady Borate Mine
- ABR shares are up 1.33 per cent, trading at $1.52
American Pacific Borates (ABR) has initiated a US$30 million (almost A$40 million) drawdown of renegotiated financing for the construction of a Southern Californian mine.
The funds raised will go towards construction at the Fort Cady Borate Mine including site works, equipment costs, personnel, engineering expenses and establishing required infrastructure in order to construct facilities for the production of borates.
Fort Cady is a highly rare and large colemanite deposit and is the largest known contained borate occurrence in the world not owned by the two major borate producers Rio Tinto and Eti Maden.
The company entered a binding term sheet in June 2020 to raise the cash via a convertible note.
Under the terms of the note, Virtova Capital Management had the ability to convert the note into over 50 million fully paid ordinary shares in the company within the two-year time frame of the note.
The company also had the ability to force this conversion if its shares traded over $1.75 per share on the ASX for ten consecutive days.
Shareholders approved the issue of up to 6,666,666 notes to be drawn down before February 14, 2021.
Additionally, Sinar Mas Mining has agreed to support American Pacific Borates with its ongoing financing activities for mine expansion.
American Pacific Borates renegotiated the convertible note to 100 per cent equity and renegotiated the time period for the drawdown with 100 per cent of the money due on January 31, 2021.
ABR shares are up 1.33 per cent, trading at $1.52 at 1:45 pm AEDT.
