On Tuesday (23 July 2024), several ASX-listed mining companies were either raising capital or securing finance facilities to support their strategic objectives, such as Australian mining company Metarock Group (ASX:MYE), which refinanced and secured a facility of up to $30 million.
Metarock’s operational subsidiaries executed a facility agreement secured with Scottish Pacific Business Finance for the ongoing provision of working capital finance.
Under the agreement, the key terms include a debtor finance facility with a limit of up to $30 million and a minimum two year term.
The latest refinanced facility replaced a previously announced Westpac invoice finance facility. No remaining debt facilities have been left with the lender.
Metarock Group notes Scottish Pacific Business Finance has also been approved for a new $5 million equipment finance facility, subject to usual documentation.
Alliance Nickel (ASX:AXN) agreed to an unsecured $4 million loan facility from long-term shareholder Zeta Resources (ASX:ZER) to complete a Definitive Feasibility Study at the NiWest Nickel-Cobalt Project.
The funds will also allow the company to undertake final metallurgical testing and general working capital.
Subject to shareholder approval, Alliance Nickel will issue Zeta 22.22 million unquoted options exercisable at $0.18 each, with a three year expiry date.
If shareholder approval is gained within three months of the date of the loan facility, Alliance Nickel will pay the lender an option fee of $345,000.
Meanwhile, Warriedar Resources (ASX:WA8) has signed a binding agreement for the sale of its Golden Range camp assets to Fenix Resources (ASX:FEX) for $2 million.
The gold and copper explorer says there are no conditions precedent to complete this transaction, which is due to take place on 5 August 2024.
Under the sale agreement, Warriedar retains the right of refusal to repurchase the company if Fenix seeks to sell the assets to a third party upon the completion of iron ore production from its Shine Iron Ore Mine.
The agreement also provides for Fenix to make rooms and messing in the camp available for Warriedar. Warriedar is able to construct alternate camp accommodation if mining begins at the Golden Range Project, while Fenix continues its iron ore mining activities at Shine.
Warriedar says the funds will go towards ongoing exploration drilling at the 25km long Golden Corridor.
Further, Askari Metals (ASX:AS2) has secured a $850,000 funding package, comprising redeemable notes with investors.
The funds provide the company with access to the working capital required to pursue its Tanzanian uranium investment strategy, following a recent acquisition of the Matemanga Uranium Project.
Funding will also help proceed with low-cost, high-impact exploration campaigns at the Uis Lithium Project, where trenching, mapping, and sampling is defining high confidence drill targets.
Write to Aaliyah Rogan at Mining.com.au
Images: Metarock Group
