Amaroq Minerals Ltd., an independent mine development company with gold and strategic mineral assets in Southern Greenland, has successfully closed its previously announced US$50.9 million senior secured package. The package consists of senior debt term loans, convertible notes, and an overrun loan. The CEO of Amaroq, Eldur Olafsson, expressed his pleasure at the closing of the debt funding package, stating that it marks a milestone for the company and enables the transition to full-scale production at the Nalunaq gold project.
The Convertible Notes will bear interest at a rate of 5% per annum and will mature on September 1, 2027. The principal amount of the Convertible Notes can be converted into common shares of the company at a conversion price of Cdn$0.90 per share. The company has the option to repay the Convertible Notes and accrued interest in cash, subject to providing 30 days' notice to the noteholders. The Facilities have a two-year term and will bear interest at the CME Term SOFT Rates with a margin of 9.5% per annum.
The Facilities and Convertible Notes will be secured by various agreements, including bank account pledge agreements, share pledges, a proceeds loan assignment agreement, a pledge agreement in respect of owner's mortgage deeds, and a license transfer agreement.
Livermore Partners LLC, a related party of Amaroq, subscribed for US$2.4 million in principal amount of Convertible Notes. This transaction is considered a related party transaction and is exempt from certain requirements under Multilateral Instrument 61-101.
Overall, the closing of the debt financing package will support Amaroq Minerals in advancing its operations and progressing towards trial mining activities at the Nalunaq gold project.