The Credit Facility includes the following key terms:
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In IKN306 this weekend (well, Monday evening this time) I made mention of Red Eagle Mining (RD.v) and its Colombia gold project for what (I think) was the first time, mainly due to the permits it had received from the Colombian government. The very last line of that brief-ish note was...
"If the capex arrives and it's equity-friendly
it may become a trade, but not before that."
...so today's news is more than interesting, because it's a massive step to getting the gig fully funded. In ballpark terms and what we'll be left with, assuming the side-by-side $15m placement happens correctly, is a company with around 140m shares out and all the cash it needs (approx $80m, which was my own best guess in IKN306) to build a mine. We've always got to be wary of the details in financing deals (there be devils a-lurkin') but this summary from today's NR is what we know so far:
Interest on secured debt plus "production payment" plus juicy warrants, clearly the money people at Orion (the ex-Red Kite people) aren't giving their cash away here, as that's a financier-friendly deal if ever I saw one. What we the grunts at the bottom of the food chain need to decide is whether there's enough love left once the big money has been paid off to buy the stock at 30c and on that one I simply don't know yet, there's numberwork to do. But you can't fault RD.v for moving forward, something that hundreds of juniors have abjectly failed to do in the last few years.