Arianne Resources Inc. (TSXV:DAN,FWB:JE9N,OTCBB:DRRSF) has closed the previously announced CAD$10 million credit facility and a CAD $1 million non-brokered private placement.
As quoted in the press release:
Under the terms of the credit facility, Arianne can draw up to Cdn$10 million and all amounts drawn will bear interest at a variable rate equal to 500 basis points over 3 month Canadian LIBOR. Additionally, the Company issued the lender 4 million non-transferable warrants which are subject to vesting periods imposed by the TSX Venture Exchange (the “Exchange”) (please refer to the July 26, 2012 press release for details on terms and conditions of the warrants). As at the date hereof, 2 million warrants have vested and the remaining 2 million warrants shall vest as additional amounts are drawn by the Company. The warrants are also subject to a mandatory hold period of four (4) months ending January 11, 2013. Lastly, Arianne has also provided the lender with a Cdn$1/tonne production fee on all phosphate concentrate sales from the Project. The production fee can be repurchased at anytime for a lump sum payment of Cdn$6 million. The production fee must also be repurchased by the Company for the same amount in the event of a change of control where at least 90% of Arianne’s issued and outstanding shares are acquired, purchased or otherwise owned by a third party, either by way of takeover bid or any other type of transaction having the same result. In connection with this transaction, Arianne paid on closing an arrangement fee of Cdn$100,000 to the agent and a commitment fee of Cdn$200,000 to the lender.
Arianne Resources Chairman and CEO Bernard Lapointe said:
With this funding closed, we can now focus on completion of our bankable feasibility study with Cegertec WorleyParsons and securing the permits to develop our world-class Lac a Paul phosphate mining project.