Osino Resources has entered into an agreement with Nebari Gold Fund 1, LP and Nebari Natural Resources Credit Fund I, LP, with Nebari Gold Fund 1, LP as collateral agent and certain Osino subsidiaries as guarantors, for a credit facility of up to N$276.3 million (US$15 million).
The Credit Facility provides for an initial draw of N$89.1 million (US$5 million), with the potential of two additional draws of N$89.1 million (US$5 million) each, at the determination of Osino, and subject to conditions precedent.
In connection with the Credit Facility, Nebari is entitled to receive approximately 26.7% warrant coverage of common share purchase warrants issued only in the event of a draw-down under the Credit Facility priced at a 30% premium to the 10-day Volume Weighted Average Price preceding to the draw.Â
The Credit Facility and any Warrants issued thereunder are subject to approval and the policies of the TSX Venture Exchange.
There are no finder’s fees payable in respect of the Credit Facility.
The miner recently released a pre-feasibility study for Twin Hills based on 2.15 million ounces in reserves, outlining a 13-year open-pit mine life with an average annual gold production rate of 169 thousand ounces per annum at all-in sustaining costs of US$930/ounce in the 10 years of operation.Â
“Given the significance of the farmland purchases to secure and de-risk the Twin Hills mining project development, and considering the volatility in the equity markets, we decided to secure the required funding for these pre-development expenses in the most non-dilutive manner to shareholders,†Osino CEO Heye Daun said.
“Osino has been in discussions with Nebari for a considerable amount of time, whilst we structured this transaction to ensure maximum flexibility for Osino, without adversely affecting the rapidly evolving and competitive project finance process. We appreciate Nebari’s cooperation and flexibility in this regard.â€
Andre Krol, Managing Partner with Nebari said, â€we are extremely excited to partner with Osino as they advance the Twin Hills project. We are impressed with the experience and professionalism of the Osino team and have the utmost confidence in their ability to continue to unlock value at Twin Hills and beyondâ€.
Osino Resources was recently granted a provisional confirmation from the Ministry of Mines and Energy for a 20-year mining licence for its Twin Hills gold project.
The listed Canadian gold exploration and development company has appointed UK-based Terrafranca Capital Partners Ltd as its debt advisor, to assist with the debt financing for the development of its Twin Hills Gold Project.
In July Osino Resources Corp completed the acquisition of Ondundu gold exploration property in Namibia from B2Gold for a total consideration of N$257.3 million in a deal where B2Gold Mining Investments Limited has agreed to receive Osino Resources Corporation shares in lieu of cash.
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