AusQuest inks $750 000 funding deal with major shareholder
JOHANNESBURG (miningweekly.com) – Sydney-listed AusQuest has secured funding of up to $750 000 from major shareholder Christoper Ellis, which, in combination with existing cash reserves, will enable the mine developer to continue to advance its prospective Western Australia-based nickel projects and Peru-based copper projects.
The funding would be provided through the execution of a loan and convertible note agreement, and would be advanced in three tranches of $250 000 each.
However, conversion of the loan to AusQuest shares remained subject to shareholder approval at the company’s annual general meeting, to be held on November 26.
Under the terms of the deal, the conversion price for AusQuest shares had been set at a minimum price of 2c apiece and the loan was interest-free for six months from the date of issue of each note.
AusQuest MD Graeme Drew said the funding arrangement represented a strong vote of confidence by the company’s major shareholder in the potential of its key projects, underpinning ongoing exploration efforts and avoiding the need to undertake a dilutive capital raising at a “low point” in the market.
“We are pleased to have concluded this agreement, as it will facilitate ongoing nickel exploration in Western Australia, where we have recently identified some exciting new prospects,” he commented.
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