EMED shares spike on private financing, extended offtake agreements
TORONTO (miningweekly.com) – The TSX-listed shares of project developer EMED Mining, which is working to restart production at its flagship Rio Tinto mine, in Spain’s Andalucia region, spiked 25% on Thursday, after the company announced it was raising $15-million through issuing new convertible secured notes to Chinese copper smelter XGC and international commodities group Red Kite, as well as allocating more offtake rights.
The notes would carry a conversion price of 9p a share, which represented a premium of 58% over the current five-day volume-weighted average price. EMED said the funds raised would be used to continue final permitting and the preliminary restart of activities at the project and for general working capital purposes.
EMED added that it was proposed that offtake rights to buy 1% of production from existing reported reserves would be granted to XGC and Red Kite for every $1-million of notes subscribed for, on a proportional basis, with the main commercial terms of such grants being the same as the pre-existing contract.
"The proposed arrangements with globally important copper-sector specialists XGC and Red Kite will form an important component of EMED Mining's support for long-term development at the Rio Tinto copper project. We are heartened by XGC and Red Kite's continued support following the completion by them of further due diligence on all aspects of the project over the last couple of months, and we expect to finalise documentation imminently,” EMED MD Harry Anagnostaras-Adams said.
XGC VP Harry Liu added that XGC remained confident of the restart of the Rio Tinto copper project, and was pleased to reinforce its support of the company to achieve the desired timetable in full collaboration with the authorities.
The company’s stock was trading at C$0.10 apiece on Thursday morning.
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