Mustang attracts big bucks
12th January 2018
Resources Rising Stars
Mozambique-focused junior Mustang Resources has secured a A$19.95 million funding package from a US institution, reports MiningNews.
New York-based Arena Investments has committed the funding via a multi-tranche convertible note facility.
Funds will be drawn down in seven tranches with the first tranche of $1.9 million to be received on signing, followed by a second tranche of $3.8 million in May.
The balance of $14.25 million will be available in five further drawdowns of $2.85 million each over two years.
Mustang will also conduct a one-for-five non-renounceable entitlement offer of up to $4 million in conjunction with the Arena funding.
Shareholders will be given the opportunity to subscribe for new shares at 2.6c each, a 16.1% discount to Mustang’s last closing price of 3.1c.
The new funds will be used to advance the Montepuez ruby and Caula graphite projects in Mozambique.
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