- Exploration company Jadar Resources (JDR) has signed a definitive agreement with Mint Capital Advisors for a $10 million financing facility
- Under the two-year deal, Jadar will be able to drawdown up to $300,000 each month on an as-needed basis
- All shares issued to Mint as a result of the drawdown will be priced at 90 per cent of Jadar’s 15-day volume-weighted average price
- However, Jadar will only be able to drawdown if the issue price is above $0.04 per share, and Mint’s shareholding is not able to exceed 9.99 per cent of Jadar’s outstanding securities
- Funds provided by the facility will be used primarily for exploratory drilling work in Peru and Mexico
- Jadar Resources is down 5.41 per cent to 3.5 cents per share
Exploration company Jadar Resources (JDR) has signed a definitive agreement with Mint Capital Advisors for a $10 million financing facility.
According to the terms of the two-year deal, Jadar will be able to drawdown up to $300,000 each month on an as-needed basis in exchange for shares issued to Mint.
These shares will be issued at a price equal to 90 per cent of Jadar’s 15-day volume-weighted average price. However, drawdowns are only able to be made if this price is above $0.04 per share and Mint’s shareholding in Jadar is not eligible to exceed 9.99 per cent.
In the event that Mint’s holding exceeds this amount, it will be required to use “reasonable endeavours” to sell off a portion of its ownership in order to maintain compliance with the terms of the facility.
Jadar said the financing forms part of its broader growth strategy and the funds will be used to support further exploratory drilling work across its portfolio of projects, particularly in Peru and Mexico.
“We are delighted to have finalised the definitive agreement with Mint,” said Adrian Paul, Executive Director of Jadar Resources.
“This equity capital source of funding provides the company with an entirely new funding option that delivers great flexibility and strengthens our financial position in what is currently a transformational period for Jadar,” he added.
While the whole facility may not be used in its entirety, Jadar said it provides flexibility to capitalise on opportunities and progress its assets as required.
Jadar Resources is down 5.41 per cent to 3.5 cents per share at 3:11pm AEDT.