St Augustine Gold and Copper (TSX:SAU) has signed a US$30 million ($44 million) unsecured convertible note with TVI Resource Development Phils (TVI) to advance its Kingking Copper-Gold Project in the Philippines.
The note matures nine months after the principal is advanced unless both parties agree to an extension, and accrues interest at the term secured overnight financing rate (SOFR) plus 3% per year, payable quarterly.
Under the terms, TVI can convert all or part of the principal and any unpaid interest into common shares at C$0.175 ($0.18) each, matching the closing price on the Toronto Stock Exchange (TSX) on 26 June 2026. Amounts convert from US dollars to Canadian dollars at the exchange rate on the conversion date.
Proceeds will fund the completion of the Definitive Feasibility Study, related technical studies, and permitting at Kingking. The funds also cover operating and corporate expenses, general working capital, and the repayment of about US$10 million owed to Metanoia South.
TVI is a related party because CEO Manuel Paolo Villar is its controlling shareholder and an officer, alongside other St Augustine officers and directors who hold similar positions at TVI.
Disinterested shareholders approved the financing at the annual general meeting on 26 June 2026, with about 99.63% of votes cast in favour.
The TSX has conditionally approved the private placement, subject to the company meeting all exchange requirements. The note and any shares issued on conversion carry a hold period expiring four months and one day after issuance.
St Augustine Gold and Copper is a developer focused on its Kingking Copper-Gold Project. The project is one of the largest undeveloped copper-gold deposits in the world and is listed as a top-three-priority mining project by the Philippine Government.
Write to Paula Fabe at Mining.com.au
Main image: St Augustine Gold and Copper
