4/27/2023 0 Comments Red kite master fund![]() Additional financing, if required, may be fulfilled through equipment lease financing, exercise of outstanding warrants and other non-dilutive alternatives (Table 1).ĬAPEX for Buriticá Project (March 2016 Feasibility Study)Įquity Financing with Newmont and Red Kite ![]() The Company intends to use the proceeds of Newmont’s investment to develop the Buriticá project and such proceeds satisfy the funding condition required to draw the second tranche of US$100 million under the Credit Facility. The CAPEX of US$389 million, outlined in the 2016 feasibility study for the Buriticá project, will be fully-funded with US$403 million of available cash and debt allocated. Newmont and Continental will also form a strategic alliance to evaluate opportunities to partner on exploration of Continental’s other properties in Colombia. one seat for a Newmont nominee on the Continental Board of Directors.the formation of joint management technical, exploration, and sustainability committees and.a right of first offer for any non-equity financing greater than US$30 million.‘backstop rights’ to subscribe for any unsold portion of future equity financings.participation rights in any future equity financings to maintain pro rata ownership interest.a twelve-month lock-up on share dispositions.a standstill until the Buriticá project goes into commercial production.In connection with the Newmont Private Placement, Newmont and Continental have entered into a binding Investment Agreement, the provisions of which include: With Newmont as a partner and the completion of this financing, Continental will be well-positioned to build Buriticá and create significant value for our shareholders with first gold pour on track for early 2020.” We look forward to capitalizing on Newmont’s experience to successfully kick-off formal construction at the Buriticá project later this year. Newmont is our first choice for a cornerstone investor with its best-in-class balance sheet, excellent operating team and recent track record of delivering projects on schedule and under budget. The private placements will not close before post receipt of regulatory approvals, including by the Toronto Stock Exchange.Īri Sussman, CEO of Continental, commented: “After completing a formal process in which a number of alternatives (including multiple equity financing offers) were evaluated, we are pleased to be welcoming Newmont and Red Kite as investors in Continental. After giving effect to the private equity placements, Newmont and Red Kite will own approximately 19.9% and 4.6%, respectively, of the issued and outstanding common shares of Continental on a non-diluted basis. Concurrently with Newmont’s investment in Continental, RK Mine Finance Master Fund I Limited (“Red Kite”) has also agreed to purchase 8.59 million common shares of the Company on a private placement basis at a price of C$4.00 per share for a total investment of US$25 million, as contemplated in Continental’s secured project credit facility (the “Credit Facility”) with Red Kite. (TSX: CNL) (OTCQX: CGOOF) (“Continental” or the “Company”) is pleased to announce that Newmont Mining Corporation (“Newmont”) has agreed to purchase 37.38 million common shares of the Company at a price of C$4.00 per share for a total investment of US$109 million in a non-brokered private placement (the “Newmont Private Placement”). TORONTO, ON–(Marketwired – May 11, 2017) – Continental Gold Inc.
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