Excelsior Mining Corp. (Excelsior) has closed a US$75 million project financing package (collectively, the financing). The financing has been provided by Triple Flag Mining Finance Bermuda Ltd. (Triple Flag), and consists of a US$65 million copper metal stream (Stream) and a concurrent US$10 million private placement of common shares of Excelsior (the Equity Placement).
"With this comprehensive financing package, Excelsior will initiate construction activities at the Gunnison copper project before year-end," said Stephen Twyerould, President & CEO.
"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 US$20 million. This amount consists of the initial US$10 million of the US$65 million deposit (the Stage 1 upfront deposit) under the terms of a metals purchase and sale agreement (the Stream Agreement), and US$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 US$10 million, or equal to approximately CAN$0.95 per share at current exchange rates. The common shares are subject to a four month statutory hold period that expires on 31 March 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 30 November 2018, entitling Triple Flag to purchase 3.5 million Excelsior common shares at a strike price of CAN$1.50 per share issued.Excelsior is expecting an additional US$9.4 million in financing proceeds from affiliates of Greenstone Resources L.P. pursuant to the terms of a previously announced subscription agreement (see Excelsior news release dated 21 November 2018). In addition, if Altius Royalty Corp. chooses to exercise its construction royalty option, Excelsior shall receive an further CAN$5 million in financing proceeds.
Excelsior has also announced that the decision has been made by the Board of Director's to proceed with construction at the Gunnison copper project. This decision follows the close of the US$75 million financing.
"With access to over US$75 million in capital, Excelsior is ideally positioned to start construction this year, and we are supremely confident in the ability of our management team to execute and maintain our construction schedule," added Mark Morabito, the Chairman of the Board. "I want to thank our project financing partners, Triple Flag and Greenstone Resources for their commitment and support as we now move towards first production in 2019."
Read the article online at: https://www.globalminingreview.com/finance-business/03122018/excelsior-mining-closes-us75-million-project-financing-package/