Robex Resources Secures $130 Million for Kiniero Gold Project
Robex Resources Inc. Signs Major Financial Agreement
Robex Resources Inc. is excited to announce a significant financial milestone with the signing of a US$130 million syndicated facility agreement. This agreement is a crucial step forward for the company as it secures essential funding to advance the Kiniero Gold Project. With this funding arrangement in place, Robex is gearing up for a promising phase of development.
Details of the Facility Agreement
The facility agreement involves a collaboration with Sprott Resource Lending (US Manager) Corp., which acts as both agent and lead arranger. Sycamore Mine Guinée-SAU, a subsidiary of Robex, is designated as the borrower. This agreement highlights the financial terms aimed at facilitating the construction phase of the Kiniero Gold Project located in Guinea.
Key Financial Aspects
The US$130 million senior secured debt facility offers several appealing financial conditions for Robex. This includes a maturity date five years post-closing and an interest rate set at 6.50% per annum over the SOFR reference rate. Notably, 50% of the interest will be capitalized during the construction period, easing the short-term cash flow pressures for the company.
Additional Financial Benefits
In addition to the principal financing details, there's an intriguing aspect regarding gold price participation. The agreement includes an extra payment structure based on gold price fluctuations, which is calculated to be approximately $300 per ounce concerning a specified quarterly amount. This unique feature positions Robex advantageously in a dynamic market.
Listed Shares: A Future Goal for Robex
Matthew Wilcox, the Managing Director and CEO of Robex, shared excitement about the future, emphasizing the importance of this facility agreement. He confirmed that securing this financing is foundational to the successful execution of the Kiniero Gold Project. As an ambitious next step, Robex is aiming to list its common shares on the Australian Securities Exchange, with plans projected for the upcoming months, bringing additional visibility and capital opportunities.
Conditions and Bonus Shares Information
As stipulated in the facility agreement, upon the disbursement of the debt facility's initial utilization, Robex will issue common shares to the lender as part of the compensation structure. This issuance aligns with a commitment to foster a mutually beneficial relationship with stakeholders involved in financing.
Understanding the Issuance Structure
The common shares to be issued represent a 1.00% stake of the total commitment under the facility, with an attractive pricing mechanism for the shares. This issuance is designed to secure a strong alignment of interests between Robex and its lenders while also providing a method for stakeholders to share in future successes.
The Path Ahead for Robex
With the backing of significant financial resources and the prospect of market listing, Robex Resources Inc. is well-positioned for an exciting trajectory ahead. The company's commitment to transparency and regular updates on project developments should serve to reinforce investor confidence and community support.
Frequently Asked Questions
What is the purpose of the US$130 million facility agreement?
The facility agreement is designed to finance the construction of the Kiniero Gold Project, enhancing Robex’s operational capabilities and growth potential.
How does the interest rate structure work?
The interest rate is set at 6.50% per annum over the SOFR reference rate, with half of the interest being capitalized during the construction period to ease cash flow.
What are the implications of the gold price participation?
This allows Robex to benefit from higher gold prices, with payments based on a formula designed to capture additional upside potential in gold market fluctuations.
When does Robex plan to list its shares on the Australian Securities Exchange?
Robex is targeting a share listing on the ASX in the near future, aiming for increased visibility and investment opportunities.
What is the role of the additional common shares issuance?
The issuance of common shares to the lender serves as part of the compensation package, aligning the interests of both parties closely and allowing lenders to participate in potential future successes.
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