JOHANNESBURG (miningweekly.com) – North River Resources has completed several “key operational objectives” at its flagship Namib lead and silver project in Namibia and has, therefore, satisfied the conditions precedent to draw down the second tranche of equity funds from a $12-million investment agreement with Greenstone Resources.
The second tranche was prepriced in the agreement at a price of 0.7p per ordinary share and would raise proceeds of $2.87-million.
The funds would be used to further advance the development of Namib, as the company looked to restart production at its brownfield underground mine.
The exact number of shares to be issued to Greenstone would be determined by the exchange rate at the time of payment, which was expected to occur in about two weeks.
Application for the second-tranche shares to be admitted to trading on Aim would occur shortly thereafter.
“Following the issuance of the second tranche shares, and based on current exchange rates, Greenstone is expected to have a 29.3% interest in the enlarged share capital of the company.
“A further announcement would be made to the market to confirm Greenstone Resources' holding at the appropriate time,” North River said on Friday.
Operational milestones that had, thus far, been completed at Namib included a detailed mine design, completion of 3 585 m of underground drilling and approval of the environmental-impact assessment.
The company would use the proceeds of the second tranche to work on further operational objectives required for the drawdown of the third tranche of funding under the agreement, which would include a construction execution plan, detailed engineering design, debt financing and the award of construction contracts.
The company was also currently awaiting the granting of a mining licence from the Department of Mines & Energy.
“We are very pleased to have reached this series of project milestones and continue to work with our strategic partner Greenstone Resources. Project planning remains on track and there will be further news regarding this shortly,” commented North River MD Martin French.