Vertex Minerals (ASX:VTX) has chosen Vert Capital Australia as a lead manager to secure funding for its Reward Gold Mine, 35km northeast of Leonora in Western Australia’s Goldfields-Esperance region.
Vert Capital is responsible for negotiating new convertible loan facilities with unrelated sophisticated and professional investors.
Loans are expected to incur a 10% per annual interest rate that will be combined with the principal and converted into fully paid ordinary Vertex shares.
The two-tranche deal is worth a combined $9 million and requires Vertex shareholder approval.
Proceeds will be used towards progressing mainstream underground gold production and sales at the mine. The money will also help cover other general working capital expenses.
“New funding represents significant financial support towards Vertex’s progress with ground gold production and sales from the Reward Gold Mine,” Vertex Executive Chairman Roger Jackson says.
Vert Capital will receive up to a 4% management fee plus Goods and Services Tax, which could be worth as much as $396,000. Receiving Vertex shares as either part or full payment is optional.
Vertex Minerals is a gold producer, developer and explorer with assets mostly in New South Wales and Western Australia.
Write to Richard Szabo at Mining.com.au
Images: Vertex Minerals
