Antilles Gold Limited (ASX:AAU) has revealed plans to raise approximately A$2 million after costs.
The proposed issue will be effected in the following manner:
i) 61,000,000 New Shares will be issued at A$0.033 each on or about 20 December 2022 to raise A$1,900,000 after costs of approximately A$113,000.
ii) 3,000,000 New Shares will be issued at A$0.033 each to the company’s Chairman, Brian Johnson, to raise A$99,000 subject to approval by shareholders at a Meeting to be held on or around 24 January 2023.
The securities will be placed to Sophisticated Investors nominated by Stockbrokers, or directly by the company.
The funds raised will be expended on a drilling programme of the highly prospective El Pilar copper- gold porphyry deposit, and its overlying gold-copper oxide cap in central Cuba.
The first stage of the drilling program will involve 7000m of shallow (100m) holes on the copper- gold oxide cap at El Pilar and around five holes, 700m into the highly prospective underlying copper porphyry deposit.
The programme will commence late January or early February 2023 and a more substantial follow-up programme on the porphyry deposit will follow.
To ensure funding of the company’s intended activities through to June 2023, Antilles Gold’s Chairman has advised that his trustee company, Moonstar Investments Pty Ltd, is prepared to provide a Convertible Note to the company with a face value of A$1.0 million, with expiry on 31 December 2023, and an interest rate of 8% pa. All or part of the Note may be converted to AAU shares at A$0.05 each up to 31 March 2023, at A$0.07 each between 1 April and 30 June 2023, and thereafter at a 15% discount to the 15 day VWAP.
To minimise near term dilution for shareholders, the company is in negotiations to establish a facility that would fund the exploration program in Cuba in 2023 and 2024.
The company is confident that both the facility and Convertible Note will be able to be repaid from proceeds of approximately US$30 million of contractual claims against the Dominican Republic Government from a previous project.
The Tribunal involved in the arbitration under the rules of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) in Washington DC will complete the evaluation of the claims at a hearing in the first week of June 2023, with proceeds from their rulings expected by the end of 2023.
For further information please visit: https://antillesgold.net/
