India-focused NSL Consolidated has secured a $4-million convertible loan facility from a US-based investment firm to fund its iron-ore projects.
Under the loan facility with Magna, NSL would receive $125 000 on the date of closing, and an additional $125 000 within 30 trading days of closing. Subsequent funding in tranches of up to $250 000 would be available every 60 calendar days at NSL’s election.
The unsecured facility would have a 24-month term, and would bear no interest costs, and can be repaid at any stage, with a 15% premium. The facility could also be converted into NSL shares at any time by Magna, at a 20% discount to the five-day volume-weighted average price of NSL’s ordinary shares.
The commitment shares would be issued within the company’s placement capacity, and NSL would seek shareholder approval for the issue of subsequent securities, if and when required.
“This competitively priced funding facility replaces the Efectivo facility and provides the financial capacity to allow the company to pursue its Indian iron-ore production strategy that will add significant shareholder value,” said NSL MD Cedric Goode.
“The funding will be put towards finalising offtake arrangements and production.”
Goode said that the funding facility had the ability to deliver significant benefits to NSL by providing funding stability in concert with a sophisticated supportive funding partner that was focused on longer-term partnerships.
NSL in July last year restarted its dry beneficiation plant in India.
The first phase of the operation would see NSL transport about 200 000 t of low-grade existing stockpiles at its AP23 tenement to the Kurnool stockyard. The material will be processed through the existing NSL plant, which had been under care and maintenance.
The company was expected to announce the results of its offtake negotiations in the coming weeks
Source: miningweekly
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