Amaroq Minerals closes debt financing
On September 1, 2023, Amaroq Minerals Ltd. (“Amaroq”) announced the successful closing of a previously announced US$50.9 million senior secured package, consisting of:
- US$18.5 million senior debt term loans pursuant to revolving credit facilities provided by Landsbankinn hf. and Fossar Investment Bank (“Fossar”);
- a total of US$22.4 million convertible notes, with US$16 million of convertible notes issued to ECAM LP—an affiliate of GCAM LP, which owns a 49% interest in Gardaq A/S, an Amaroq subsidiary—as well as US$4 million to JLE Property Ltd. and US$2.4 million issued to Livermore Partners LLC; and
- an overrun loan from JLE Property Ltd. of up to US$10 million under a revolving credit facility.
The convertible notes will bear interest at a rate of 5% per annum and mature on September 1, 2027, four years from the offering’s closing date. The principal amount of the convertible notes will be convertible, in whole or in part, at any time from one month after issuance into common shares of Amaroq at a conversion price of C$0.90 (£0.525) per share for a total of up to 33,629,068 common shares.
The convertible notes, along with the term loan and overrun facilities, will be secured by (i) bank account pledge agreements from Amaroq and Nalunaq A/S, (ii) share pledges over all current and future acquired shares in Nalunaq A/S and Gardaq A/S held by Amaroq pursuant to the terms of share pledge agreements, (iii) a proceeds loan assignment agreement, (iv) a pledge agreement in respect of owner’s mortgage deeds and (v) a licence transfer agreement.
The proceeds from the convertible notes and the facilities will be used to fund the transition of the Amaroq’s Nalunaq mining licence from a bulk sample trial mining development plan to staged, full scale production of gold doré on site by bringing forward construction of a processing plant and associated infrastructure.
Further information can be found on Globe Newswire’s website.
Amaroq Minerals is an independent mine development company. Its principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in Greenland. The company's principal asset is a 100% interest in the Nalunaq Project, an advanced exploration stage property with an exploitation license, including the previously operating Nalunaq gold mine.