Metals One secures £4m funding package to advance gold projects

econews. Yorkville and its affiliates are barred from holding short positions in Metals One shares while the note remains outstanding, and cannot own more than 9.99% of the company's share capital through warrant exercises.

Proceeds will go towards advancing Metals One's gold projects across Africa and the Americas, alongside general working capital needs.

Daniel Maling, managing director of Metals One, said the funding structure allows the company to advance its core mining projects without near-term equity issuance at current depressed share prices.

He added that the deal lets the company draw on the marketable value of its non-core portfolio to fund growth opportunities without diluting shareholders.

Maling said the company was well placed to accelerate its gold acquisition, exploration and development work, and pointed to the coming quarter as a pivotal period for its growth ambitions.

The funding is structured as a senior promissory note rather than a convertible instrument, meaning the loan principal cannot be converted into equity.

Including the new package, Metals One now holds more than £11 million in cash and liquid portfolio investments.

The company said repayments are expected to come from the sale of non-core portfolio holdings, of which it currently has an estimated £6 million.

Metals One will issue Yorkville warrants equal to 100% of the value of the promissory note, exercisable for three years at a strike price set at 130% of the previous day's closing share price.

The note was issued at a 5% discount, carries interest of 7% a year, rising to 18% in the event of default, and will see the company receive net proceeds of £3.74 million after fees.

Principal will be repaid in equal monthly instalments of 10% of the original amount, alongside accrued interest, starting 60 days after closing.

The company also announced the appointment of Spark Advisory Partners as its new AIM nominated adviser, replacing Beaumont Cornish immediately.

finance.yahoo reports