Emerita Resources Secures $6 Million in First Credit Tranche
Emerita Resources Closes on First Tranche of USD$6 Million Under Credit Facility
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
TORONTO, Emerita Resources Corp. (TSXV: EMO) (the “Company” or “Emerita”) announces that it has drawn down and received USD$6 million in funding under the first tranche of its credit agreement, as amended, with Nebari Natural Resources Credit Fund II, LP (the “Lender”). This funding is in line with the Company’s announcement regarding the Loan Agreement.
In connection with the receipt of the funding, the Company issued 9,963,636 non-transferable common share purchase warrants (the “Loan Bonus Warrants”) to a nominated affiliate of the Lender. Each warrant enables the holder to acquire one common share of the Company at an exercise price of $0.825 per Warrant Share until the maturity date of the Loan Agreement. According to applicable Canadian securities laws, these warrants will be subject to a statutory hold period ending on a specified date in December. The exercise price is at a 25% premium to the closing price of the Company’s shares shortly before the agreement.
For potential future tranches drawn under this Loan Agreement, additional common share purchase warrants will be issued, allowing the purchase of one common share at a price equal to a 25% premium to the lesser of the 20-day VWAP of the Company’s share price or the Market Price at the time of issuance. These warrants are valid for 48 months following the closing of the first tranche.
The proceeds from this Loan Agreement will primarily support Emerita's working capital needs related to exploration activities and geological drilling. Funds will also help advance study work and obtain environmental permitting for its wholly-owned Iberian Belt West Project (the “IBW Project”), along with aiding general administrative expenses.
The Loan may be repaid before its maturity; however, if reduced or repaid within the first year, specific conditions apply that may affect the expiration of the Loan Bonus Warrants. Drawings on subsequent tranches remain subject to Company discretion and must satisfy applicable milestones, alongside approval from the TSX Venture Exchange.
The offered securities are not registered under the United States Securities Act of 1933 and cannot be offered or sold to U.S. persons without proper registration or exemption. This release does not constitute an offer for sale of securities in the United States.
About Emerita Resources Corp.
Emerita is a natural resource company committed to the acquisition, exploration, and development of mineral properties within Europe, particularly Spain. The Company is centralized in Sevilla, Spain, with an administrative office located in Toronto, Canada.
Contact Information
For further information, contact:
Ian Parkinson
+1 647 910-2500 (Toronto)
info@emeritaresources.com
www.emeritaresources.com
Frequently Asked Questions
1. What is the amount drawn down by Emerita Resources from the credit facility?
Emerita Resources has drawn down and received USD$6 million under the first tranche of its credit facility.
2. What will the proceeds of the Loan Agreement be used for?
The funds will be primarily used for working capital needs related to exploration, geological drilling, advancement of studies, and general administrative costs.
3. Who is the lender involved in this loan agreement?
The lender for the loan agreement is Nebari Natural Resources Credit Fund II, LP.
4. How long are the Loan Bonus Warrants valid?
The Loan Bonus Warrants will be valid until the maturity date of the Loan Agreement, which is specified as August 16, 2028.
5. Are the securities offered registered under U.S. law?
No, the securities offered are not registered under the United States Securities Act of 1933 and cannot be sold to U.S. persons without registration or an exemption from the registration requirements.
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