Crusader Resources Convertible loans fund raising (2710G)
November 05 2018 - 2:02AM
UK Regulatory
TIDMCAS
RNS Number : 2710G
Crusader Resources
05 November 2018
Crusader Successful Convertible Note Issue
Crusader Resources Limited (ASX: CAS, AIM: CAS) ("Crusader" or
the "Company") wishes to provide the following update on capital
raising.
Highlights
-- Successful Convertible Note issue to raise $1.0 million
-- Entitlement Issue to be announced in coming weeks
-- Capital raising intended to enable Crusader to complete the
BFS for the Borborema Gold Project and investigate value
realisation options at the Juruena and Novo Astro Gold Project
The Company has entered into agreements for the subscription and
issue of secured convertible notes to raise $1.0 million
(Convertible Notes) (before costs). The Company anticipates funds
in full being received on or before 7 November 2018.
Use of proceeds from the Convertible Notes will be used to fund
the Company's immediate working capital requirements.
The subscription and issue of the Convertible Notes is intended
to be followed by a pro-rata entitlement issue to eligible
shareholders (Entitlement Issue). The quantum and pricing for the
Entitlement Issue is being finalised and will be announced to the
market in coming weeks.
The Convertible Notes will have a principal amount of $100,000
each, carry an interest rate of 8% per annum payable in new fully
paid ordinary shares (Shares) at the 30-day volume weighted average
price in Crusader (subject to a floor price equal to the lower of
$0.01 or the Entitlement Issue price) and mature one year from the
date of issue, unless converted sooner by the investor. The
Convertible Notes will be convertible into Shares in Crusader at a
conversion price of the lower of $0.01 or the Entitlement Issue
price at any time up to 10 business days prior to the maturity
date, at the election of the note holder.
The issue of Shares on conversion of the Convertible Notes and
payment of interest is subject to the receipt of prior Crusader
shareholder approval. In the event that shareholder approval is not
received, or certain other events occur, the principal amount of
the loans and accrued interest will become immediately repayable to
the investors in cash.
Any existing Crusader shareholders or other investors who also
wish to subscribe for Convertible Notes without requiring a
disclosure document and are either a "sophisticated investor" or
"professional investor" within the meaning of section 708 of the
Corporations Act 2001 (Cth), may contact the Company or the lead
manager to apply for Convertible Notes (see contact details below).
Acceptance of applications will be subject to Board discretion in
consultation with Pinnacle.
Full details of the Convertible Notes will be set out in a
notice of meeting of shareholders to be despatched in the coming
weeks.
Pinnacle Corporate Finance Pty Ltd has been appointed as lead
manager to the Convertible Notes issue and Entitlement.
Further developments with respect to clarification of the
Company's financial position and capital raising will be notified
in due course, as appropriate.
Marcus Engelbrecht, Managing Director of Crusader said:
"I am pleased with the interest received for the convertible
notes which will provide the needed working capital for the company
as we advance further funding initiatives to lift the current
trading suspension. Work towards the BFS on Borborema is
progressing and we are exploring options around monetising our
interest in Juruena, as outlined in detail in our operations update
announced today. I look forward to providing our shareholders with
further updates and to delivering material value."
For further information, please contact:
Mr. Andrew Beigel Investor Relations
CFO/Company Secretary Office (Aus): +61 8 9320 7500
Office (Aus): +61 8 9320 7500 Email: admin@crusaderresources.com
Email: andrew@crusaderresources.com
Camarco
Pinnacle Corporate Finance Financial PR
Office: +61 8 6141 6306 Gordon Poole / Nick Hennis / Monique
Perks
+44(0)20 3757 4997 / +44(0)20
Email: ejonsson@pinnaclecf.com.au 3781 8330
Ref: Crusader Resources Limited
About Crusader
Crusader Resources Limited (ASX:CAS, AIM:CAS) is a minerals
exploration and development company listed on the Australian
Securities Exchange and the AIM Market of the London Stock
Exchange. Its major focus is Brazil; a country Crusader believes is
vastly underexplored and which offers high potential for the
discovery of world class mineral deposits.
Crusader has two key gold assets:
Borborema Gold Project
The Borborema Gold Project is in the Serido area of the
Borborema province in north-eastern Brazil. It is 100% owned by
Crusader and consists of three mining leases covering a total area
of 29 km(2) including freehold title over the main prospect
area.
The Borborema Gold Project benefits from a favourable taxation
regime, existing on-site facilities and excellent infrastructure
such as buildings, grid power, water, sealed roads and is close to
major cities and regional centres. The project's Ore Reserve
includes Proven and Probable Ore Reserves of 1.61Moz of mineable
gold from 42.4Mt @ 1.18g/t (0.4 & 0.5g/t cut-offs for oxide
& fresh). The measured, indicated and inferred Mineral Resource
Estimate of 2.43Moz @ 1.10g/t gold, remains open in all
directions.
Juruena Gold Project
The Juruena Gold Project is located in the highly prospective
Juruena-Alta Floresta Gold Belt, which stretches east-west for
>400km and has historically produced more than 7Moz of gold from
40 known gold deposits. Historically there is a database of more
than 30,000 meters of drilling and extensive geological data.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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