CANADIAN miner, Pambili Natural Resources Corporation, will raise CA$500 000 (US$352 282,25) in working capital through a series of convertible loan notes issued to qualified investors, the company said yesterday. Part of the capital raise will come from its largest shareholder, Kavango Resources Plc, who committed C$340 000 (US$239 487,73).
The miner has two gold projects in Zimbabwe — the Golden Valley Mine and Happy Valley Mine.
Golden Valley Mine has a history of high-grade underground mining with historic gold production located in the Matabeleland province, in the Bulawayo Greenstone Belt. Happy Valley Mine is located 15 kilometres from Bulawayo.
“Pambili Natural Resources Corporation is pleased to announce that it is raising up to CA$500 000 through a series of convertible loan notes issued to qualified investors. The raise is subject to the approval of the TSX Venture Exchange (TSX-V),” Pambili said in a statement yesterday.
“Pambili’s largest shareholder, Kavango Resources Plc, has committed some CA$340 000 to the raise and will remain a cornerstone investor in the company. The proceeds of the raise will be used for general working capital. This will include debt settlement and the initial evaluation of the London Wall group of mines, over which the company has secured an option to purchase.”
In November last year, Pambili announced that it signed a 12-month option agreement with Long Strike Investments (Private) Limited to acquire the gold mines and claims located in the Gwanda district of the Matabeleland Province.
Under the terms of the option, Pambili has the right to acquire 21 gold claims, which cover 173 hectares (ha) and include the previously producing London Wall and New Jessie mines. In addition, Long Strike applied for contiguous extensions to the claims, totalling an additional 547,8ha.
“Kavango is Pambili’s largest shareholder. Its participation in this raise demonstrates its continued support for our strategic approach to developing the vast modern mining and production potential on offer across Zimbabwe’s underexplored gold belts,” Pambili chief executive officer Jon Harris said.
- Mandebvu vows to lift Golden Valley Mine FC
- Gold miner seeks US$13m capital
- Canadian investors bid for Zim gold, lithium
- Zim must do more to attract investment
Keep Reading
“The proceeds of the raise will provide Pambili with the working capital required to develop its Golden Valley A1 mining claim as well as to conduct initial due diligence on the London Wall option.”
Kavango, a British-based miner, has three gold mining projects in Zimbabwe, namely, the Nara Gold Project, Leopard Project and Hillside Project.
Harris said the London Wall mine had significant potential to be a company builder.
“We look forward to being able to announce positive news from that opportunity in the near future,” Harris said.
Pambili’s plans to develop Golden Valley Mine A1 claim comes as it has identified a high-grade gold potential during drilling efforts.
“The term of each convertible loan notes is up to 12 months from the date of the convertible loan notes (term) and repayment is due and payable by either the Lender or Pambili providing written notice of repayment (Notice) within the term,” the miner said.
Pambili added said the repayment of the loan must be made within 30 days following the notice, which cannot be issued before the raise had closed or before the TSX-V approved the proposed transaction.
“Subject to TSX-V approvals, redemption will be made through the issuance of units priced at CA$0,05 per unit. Each unit comprises one Pambili share and one-half of one common share purchase warrant,” the miner said.
“Each convertible loan notes warrant will entitle the holder thereof to acquire one share at a price of CA$0,10 per convertible loan notes warrant share for a period of 12 months following notice.”
