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Excelsior Mining closes USD 75 million project financing package

Mining News - Published on Tue, 04 Dec 2018

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Excelsior Mining Corp announced that the Company has closed a USD 75 million project financing package. The Financing has been provided by Triple Flag Mining Finance Bermuda Ltd and consists of a USD 65 million copper metal stream and a concurrent USD 10 million private placement of common shares of Excelsior. Mr Stephen Twyerould, President & CEO, said "With this comprehensive financing package, Excelsior will initiate construction activities at the Gunnison Copper Project before year-end. With the two crucial milestones of permitting and construction financing now behind us, we look forward to unlocking the remarkable economics of this project as we advance towards first copper production from the wellfield in 2019."

The closing of the Financing resulted in Excelsior receiving initial gross proceeds of USD 20 million. This amount consists of the initial USD 10 million of the USD 65 million deposit under the terms of a metals purchase and sale agreement and USD 10 million proceeds of the Equity Placement. The balance of the Stage 1 Upfront Deposit will be provided in instalments at the request of Excelsior as it expends or allocates previously received funds for the construction of the Gunnison Copper Project. As per the Equity Placement component of the Financing, Excelsior has issued to Triple Flag 13,818,977 common shares at an aggregate subscription price of USD 10 million, or equal to approximately Cdn$0.95 per share at current exchange rates. The common shares are subject to a four-month statutory hold period that expires on March 31, 2018.

In consideration of the Stream, Excelsior has also issued to Triple Flag 3.5 million five-year common share purchase warrants, whose five-year term shall begin on November 30, 2018, entitling Triple Flag to purchase 3.5 million Excelsior common shares at a strike price of CAD 1.50 per share issued.

Excelsior is expecting an additional USD 9.4 million in financing proceeds from affiliates of Greenstone Resources LP pursuant to the terms of a previously announced subscription agreement (see Excelsior news release dated November 21, 2018 - Greenstone Resources Confirms US$9.4 Million Equity Placement). In addition, if Altius Royalty Corporation chooses to exercise its construction royalty option, Excelsior shall receive an further Cdn$5 million in financing proceeds.

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Posted By : Nanda Koijam on Tue, 04 Dec 2018
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