Thomson Resources (ASX:TMZ) reports it has agreed to enter into a monthly share purchase agreement for an initial term of 1 year with Lind Global Fund II, a buyout fund managed by Lind Partners.
Under the agreement, the company will be able to draw down monthly tranches aggregating no more than $3.5 million over the 12-month term. Thomson also has the option to extend this agreement for a further 12 months.
Under the agreement, the company will be able to draw down monthly tranches aggregating no more than $3.5 million over the 12-month term
Thomson reports the first tranche is for a net amount of $288,000 (after deduction of establishment and tranche fees payable to Lind of $112,000). It anticipates it will receive these funds within the next 5 business days.
Key terms of the agreement include Lind providing a first tranche payment of $400,000, and following this it will purchase Thomson shares totaling $100,000 per month.
Thomson also has the option to decrease the monthly tranche payments to a minimum of $25,000, or a maximum of $300,000 per month. The company states Lind will fund each monthly tranche at the beginning of the month, and Thomson will issue the shares to Lind at the end of the month at the purchase price.
This purchase price will be the lesser of either $0.030 (price A) or 90% of the average of the 5 lowest daily volume-weighted average price (VWAPs) during the 20 trading days prior to the issuance date (price B) subject to a floor price of $0.018 (floor price).
Going into further detail, Thomson outlines where price B is less than the floor price, it may refuse to issue that month’s shares with a 5% premium. Thomson will also hold the right to terminate the agreement at any time and at no cost if the purchase price is less than the floor price.
Other stipulations as part of the agreement includes Lind not holding more than 19.99% of Thomson’s shares at any one time, and no tranche will exceed 0.6% of the company’s market capitalisation except where the tranche has been increased as per monthly tranches.
Thomson will also hold the right to pause the agreement once per 12 month period for up to 3 months after a minimum of $700,000 has been received.
Lind Partners is an institutional fund manager and provider of growth capital to small and mid-cap sector companies publicly traded in the US, Canada, Australia, and the UK.
Thomson Resources is an Australian exploration company with a portfolio of gold, silver and tin tenements in New South Wales and Queensland. The company’s primary focus is its New England Fold Belt Hub and Spoke consolidation strategy in the border region between New South Wales and Queensland.
The company notes this strategy has been designed to create a ‘large’ precious (silver and lead), base and technology metal (zinc, lead, copper, and tin) resource hub that could be developed and centrally processed
Other assets held by Thomson include the Yalgogrin and Harry Smith Gold Projects, as well as the Bygoo Tin Project in the Lachlan Fold Belt in central New South Wales. Thomson also holds the Chillagoe Gold and Cannington Silver projects in Queensland.
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