PERTH (miningweekly.com) – ASX-listed PLD Corporation has secured A$10-million in financing to fund the acquisition of the Admiral Bay zinc and the Rocky Gully nickel/copper projects, in Western Australia.

The company on Tuesday announced that it had signed agreements with two leading mining finance managers to fund the acquisitions as well as a 24-month work programme.

A subscription agreement for 68-million shares, at 1c each, was signed with Resource Capital Funds, while a term sheet for the sale of a 1% net smelter royalty over the Admiral Bay project was also executed for a further $5-million.

A confidential term sheet was also signed with Mining Finance Fund for the sale of a 0.5% net smelter royalty over Admiral Bay for $2.5-million.

“Our A$10-million finance underwrites the acquisition and development plan for the projects involving new technology, innovation and leadership. While discussions with potential partners for Admiral Bay will continue, we are satisfied that through these agreements, owning, funding and developing the projects 100% will create more value for our shareholders,” said PLD MD Matt Gauci.

PLD has now informed the administrators of Kagara that it would exercise its option to acquire the Admiral Bay zinc project for A$500 000 in cash, a 1.5% net smelter royalty for all production from the project, and the issue of a convertible note with a face value of A$500 000.

PLD would have the right to terminate the net smelter royalty through a A$1-million buy-back in either cash or shares of 0.5% of the royalty, and a A$2.5-million buy-back of 1% of the royalty.

A further milestone payment of A$2.5-million would also be made to Kagara on the third anniversary of the start of production.

PLD would be required to spend no less than A$5-million at the Admiral Bay project within the first three years of completing the transaction, and if this expenditure was not met, Kagara could request a further A$1-million payment.

PLD said on Tuesday that it would also inform fellow-listed Heron Resources that it would elect to acquire a 90% interest in the Rocky Gully nickel project, in exchange for 28.75-million shares, or A$230 000 in cash.

PLD would also pay Heron a 1.5% net smelter royalty on all product produced at Rocky Gully.

The Rocky Gully project is one of the largest land-holdings in the Albany Fraser belt, in Western Australia, and covers some 1 200 km² of tenements.