Ascot Resources Ltd. (TSX: AOT | OTCQX: AOTVF) has entered into a definitive credit agreement with Nebari Gold Fund which consists of US$14M subordinated convertible credit facility, the Nebari convertible facility.
The Nebari facility will refinance Ascot’s existing Beedie convertible facility.
Derek White, president, and CEO, commented, “We are pleased to have found a capable and aligned financing partner in Nebari to refinance our existing convertible facility. In extending the maturity date from late-2024 to mid-2027, we enhance our operating flexibility by minimizing pressure on our balance sheet or our capital structure.”
The principal of US$14M drawn in one tranche will be used to repay the existing facility’s outstanding principal of US$10M, together with all accrued and unpaid interest and prepayment fees.
All or a portion of the US$14M can be converted into Ascot common shares at a price of $0.72, which is equal to a 20% premium to the 30-day VWAP of Ascot common shares up to 15 June 2023.
In late 2020 as part of a larger project financing package, Ascot entered a US$25M subordinated convertible credit facility with Beedie Investments Ltd., of which the company had drawn an initial advance of US$10M and canceled the undrawn facility of US$15M.
The Nebari convertible facility is bound by broadly similar terms as the Beedie facility, with the most notable difference being an extension of the maturity date from late-2024 to mid-2027.
Closing of the Nebari convertible facility is expected to be before 30 June 2023.
Nora Pincus and Juan Alvarez, managing directors at Nebari, commented, “We are very excited to be entering into this convertible facility with Ascot Resources and helping to support the construction of the Premier Gold Project as it progresses into production,”
“We are impressed with the experience and professionalism of the Ascot team and have the utmost confidence in their ability to become one of British Columbia’s premier gold producers.”
To find out more, please visit www.ascotgold.com.
