Kerr Mines Inc. (KER:TSX; KERMF:OTC; 7AZ1:FRA) recently announced the signing of a Letter of Intent with Pandion Mine Finance for US$27.6 million to fund the development and production of gold at the Copperstone Mine by Q4/19.
The financing is subject to the execution of a Prepaid Forward Gold Agreement. Additionally, there is an anticipated initial tranche of US$19.6 million targeted for August 2018 and a second tranche of US$8 million in July 2019. It has been anticipated that Pandion will sign a Definitive Agreement in August 2018; the proceeds from it will be mostly used to fund the Copperstone Mine into production by Q4/19.
"After careful review of the financing options available, we are pleased to select Pandion Mine Finance as our funding partner. We believe the terms of this financing are competitive and create value for our shareholders. It is another key milestone that our team has achieved in just over a year since taking the helm of the Company," explained Claudio Ciavarella, the CEO of Kerr Mines.
The 2018 drilling program will be started by the company to convert a significant proportion of Measured, Indicated and Inferred Resource into Proven and Probable to extend the mine life and cash flows.
Some key highlights of the agreement are that Kerr will deliver to Pandion a total of approximately 95,000 ounces over a 40 month period. However, no gold shall be deliverable by the company during the first 22 months. Another is that all other production from the Copperstone will be sold at the market price. In addition, Pandion would have the option to elect at any time to receive common shares of Kerr Mines at a price of $0.40 per share, in lieu of delivery of up to 10,000 ounces of gold, subject to the prior approval of the TSX.
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1) Jake Richardson compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
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