ARS – ALT RESOURCES GET FUNDING PACKAGE FOR BOTTLE CREEK GOLD PROJECT

Alt say, they have executed a $A4.5m funding package on attractive terms, be partly be used to complete the final payment for the acquisition of the Bottle Creek Gold Project. The funding, it seems, was by a partial offering of redeemable convertible notes to Collins Street Value Fund (CSVF). The Notes issued, will have a face value of $A5.4m for a payment of $A4.5m (subscription money), the difference of $A900K, being the equivalent of an alternative 10% interest payment per annum. The Notes also allow the Alt Resources, to redeem up to $2.7m of the notes within a 12 months period. The lender CSVF, has the option for a 12 month period, in which it also may also convert $2.7m of the notes into ordinary Alt fully paid shares at a conversion price of $0.032c per share, which is s 47% premium to the 5 days VWAP (subject to any reconstruction). The security for the Notes is the Bottle Creek Mining Leases. The deal will hinge on the Company, securing shareholder approval at a meeting to be held before 27th September 2019.

Alt also advised shareholders that the balance of the funding package, apart form completing the acquisition of Bottle Creek, is for the express purpose of commencing a small scale mining operation at Tims Find Project and was chosen to reduce equity dilution. The “Tims Find” project, the Company says, is part of the Mt Ida (yes Mt Ida, not Mt Isa) 360 Sq klm Mt Ida Project, that lies approximately 90 klms North West of Menzies in the WA Goldfields. The two Mining Leases at Bottle Creek already hold a JORC Compliant 2012 Measured, Indicated and Inferred resource of 309,000 ounces of Gold, by way of 5.6mt @ 1.71g/t Au.

Bottle Creek was previously mined by Norgold, at that time was a subsidiary of Rio Tinto. Between 1988 and 1989 Bottle Creek under the guidance of Norgold mined and produced some 93,000 ounces of Gold. The Gold price around that time was under $A300 an ounce and mining Gold by open cut method, with Gold grades below 4g/t Au, at that time was not economical. During that period, literally hundreds of Gold Mines, within Australia and globally, shut down due to the low Gold price. The open cut mining at Bottle Creek by Norgold created only a minor disturbance with a relatively shallow pit and only mined to a depth of 50m. Some of the Norgold infrastructure still remains on site, saving the company valuable asset replacement.

Seems the Project is in a prime region of the Goldfields and the Resource estimates, tonnes and grade, looks great, based on the current Gold price and based on the information supplied by the Company. Considering the ore is basically sitting on the surface, takes away the need of big strip ratio’s and having to spend millions $$, to remove soil and rock waste to access the orebody. Looks a winner and the financing package is fair to both sides. Both shareholders and the lenders should do well with this one.

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