Emerita Resources Secures First Tranche of USD$6 Million from Credit Facility
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TORONTO, Emerita Resources Corp. (TSXV: EMO) (the “Company” or “Emerita”) has announced that it has successfully drawn down and received USD$6 million as part of the first tranche of its amended credit agreement with Nebari Natural Resources Credit Fund II, LP (the “Lender”). This funding aligns with the Company’s earlier announcement regarding the Loan Agreement.
As part of this funding, Emerita issued 9,963,636 non-transferable common share purchase warrants (referred to as the “Loan Bonus Warrants”) to a designated affiliate of the Lender. Each warrant allows the holder to purchase one common share of the Company at an exercise price of $0.825 per Warrant Share until the Loan Agreement's maturity date. In accordance with Canadian securities laws, these warrants will be subject to a statutory hold period that will expire on a designated date in December. The exercise price represents a 25% premium over the closing price of the Company’s shares shortly before the agreement was made.
For any 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 over the lower of the 20-day VWAP of the Company’s share price or the Market Price at the time of issuance. These warrants will remain valid for 48 months following the closing of the first tranche.
The proceeds from this Loan Agreement will primarily be directed towards supporting Emerita's working capital needs for exploration activities and geological drilling. Additionally, the funds will facilitate study work and help secure environmental permitting for the Company’s wholly-owned Iberian Belt West Project (the “IBW Project”), as well as cover general administrative expenses.
The Loan may be repaid before its maturity; however, if it is reduced or repaid within the first year, specific conditions will apply that may impact the expiration of the Loan Bonus Warrants. Future drawings on additional tranches will be at the Company’s discretion and must meet applicable milestones, along with receiving 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 the sale of securities in the United States.
About Emerita Resources Corp.
Emerita is a natural resource company dedicated to the acquisition, exploration, and development of mineral properties across Europe, with a particular focus on Spain. The Company is based in Sevilla, Spain, and has an administrative office in Toronto, Canada.
Contact Information
For more information, please 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.
