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Graphex Mining sign Loan Note Subscription Agreement with Castlelake

Mining News - Published on Wed, 31 Oct 2018

Image Source: Corporate Digest
Graphex Mining Limited announced that it has entered into a Loan Note Subscription Agreement with funds managed by global private investment firm Castlelake LP to raise USD 5 million from the issue of secured Interim Loan Notes which becomes available immediately. The Company has also signed a term sheet setting out the proposed terms on which the Castlelake Funds and other market participants (subject to the satisfaction of agreed conditions) provide up to USD 40 million in equity and up to USD 40 million from the issue of senior secured loan notes. The Company's Managing Director Mr Phil Hoskins commented, "We are pleased to have agreed this financing transaction, which represents a major milestone for our Company. We can now proceed with completion of the bankable feasibility study (BFS) with a view to Graphex becoming a leading supplier of premium, coarse flake graphite. We take great confidence from the commitment of a global private investment firm, which follows a period of extensive due diligence. We believe this transaction affirms the quality of the Chilalo project, the premium product it will produce, the graphite market opportunity identified by the Company and confidence in the Company's ability to reach a satisfactory resolution in Tanzania."

Proceeds from the Interim Loan Notes are to be used to advance the project to be able to satisfy the conditions precedent to the Senior Funding Package. The more material conditions, in addition to customary conditions precedent, that need to be satisfied for the Senior Funding Package include:

Entry into definitive transaction documents - the term sheet for the Senior Funding Package is to be converted into transaction documents;

Completion of a BFS;

Certain Castlelake approvals and completion of ongoing Castlelake due diligence to its satisfaction;

Resolution of issues relating to Tanzania's mining legislation - a detailed submission has been provided to the Tanzanian Government and Graphex expects to present the submission to Government officials in the near future;
Execution of material contracts including off-take, mining and EPC amongst others

Source :

Posted By : Joykumar Irom on Wed, 31 Oct 2018
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