Q: Could you breakdown the significance of the Abcourt Binding Term Sheet with Glencore AG for Senior Debt Financing and Offtake Agreement.
Thank you for everything over the past 13 years and Merry Christmas!
Thank you for everything over the past 13 years and Merry Christmas!
5i Research Answer:
The senior debt financing is for $30 mln and in two tranches. The first is available at closing ($18.1 mln) and the second is available for the company to draw on at their discretion over the next year. The deal helps them restructure some higher cost debt and also provide proceeds for exploration. ABI will also issue warrant to Glencore.
For the offtake agreement, Glencore will purchase 100% of gold and silver from the Sleeping Giant Mine for 6 years or until 150K ounces have been delivered.
It looks like a decent deal for ABI. Brings on a strategic partner and secures some cash flows through the offtake agreement while providing some financing for further growth.