Robex Completes Major Financing Agreement
Robex Resources Inc. (TSXV: RBX) is thrilled to announce the successful closing of a substantial US$130 million syndicated facility agreement with Sprott, aimed at advancing the Kiniero Gold Project. This milestone marks a pivotal moment for the company as it sets the stage for significant growth in the gold mining sector.
Details of the Syndicated Facility Agreement
The new facility agreement is a senior secured debt facility, designed to finance the construction and development of the Kiniero Gold Project located in Guinea. With the closing of this agreement, Robex has met the initial conditions precedent, allowing the company to initiate its journey toward increased production capacity.
Key Terms and Updates
The agreement involves Sprott Resource Lending as the lead arranger and agent. The terms were revised leading up to the closing, which included an increase in additional interest ounces from 4,457 ounces to 4,667 ounces of gold for a duration of 15 quarters. This update reflects confidence in the project's future viability and value.
Initial Drawdown and Future Utilization
Robex has successfully drawn down US$25 million as the first utilization of the debt facility. This initial funding will propel the company forward, laying a strong foundation for continued growth. Future utilizations will depend on the fulfillment of additional conditions as specified in the facility agreement.
Comments from Management
Matthew Wilcox, Robex’s Managing Director and CEO, expressed enthusiasm over reaching this significant milestone. He conveyed gratitude to Sprott for their continued support and highlighted the efforts of all advisors involved in this transaction, including Terrafranca Capital Partners, Norton Rose Fulbright, and DLA Piper.
Issuance of Bonus Shares
As part of the financing terms, Robex issued 773,811 fully paid common shares to the lender as additional compensation, known as Bonus Shares. This issuance, representing 1.00% of the total facility commitment, was executed under the agreed terms and was offered at a price of CAD$2.43 per share, which reflects a discount to its recent trading price.
Regulatory Considerations
The issuance of Bonus Shares has received conditional acceptance from the TSX Venture Exchange. A four-month hold period will be applicable, ensuring compliance with regulatory standards.
Future Growth and Development
With the successful closing of the facility agreement, Robex is well-positioned to advance its plans for the Kiniero Gold Project, a critical asset that promises potential for high returns. This financing will support ongoing construction initiatives and operational enhancements, facilitating a greater mining output in the near future.
Robex Resources Inc. Contact Information
For additional inquiries, please contact:
Matthew Wilcox, Managing Director and CEO
Alain William, Chief Financial Officer
Phone: +1 581 741-7421
Email: investor@robexgold.com
Visit our website: www.robexgold.com
Frequently Asked Questions
What is the total amount secured in the financing agreement?
Robex has secured a total of US$130 million through this financing agreement, which will be used to advance the Kiniero Gold Project.
Who are the key partners involved in this financing?
The key partner involved in this financing is Sprott Resource Lending, which acts as the agent and lead arranger of the facility agreement.
What will the financing be used for?
The financing will primarily be utilized for the construction and development of the Kiniero Gold Project located in Guinea.
What are Bonus Shares?
Bonus Shares are additional shares issued to the lenders as part of the compensation for the facility agreement; in this case, Robex issued 773,811 shares.
How will this agreement impact Robex’s future growth?
This agreement is expected to bolster Robex’s operational capacity, directly supporting increased production rates and future profitability at the Kiniero Gold Project.
