Gold Anomaly (ASX: GOA) has entered into an agreement for provision of a funding facility from New York based investment fund SpringTree Special Opportunities Fund, LP.
The facility will provide a maximum of $6.7 million of funding to the company.
The funding is to be used as working capital to support and advance development and exploration at the company’s gold projects - Sao Chico, Crater Mountain and Ferguson Island, and its Croydon Polymetallic project.
Phillip Valliere, a Senior Vice-President of the Fund's General Partner (manager) SpringTree Global Investors, LLC commented “we are excited by Gold Anomaly’s growth opportunities. SpringTree is happy to support Gold Anomaly by providing capital for its continued development and execution of its strategic growth plan.”
Greg Starr, Gold Anomaly’s Executive Chairman commented “the key feature of this funding for Gold Anomaly is that it enables funding over time at prices that will reflect the market’s view of our company as we get into production at Sao Chico and continue to develop Crater Mountain."
"The funding also gives Gold Anomaly greater flexibility in advancing the Fergusson Island and Croydon Projects,” he added.
SpringTree will invest funds over the next 18 months with the issue price of the shares issued under the facility linked to market prices at the time of funding.
This structure means potentially less dilution if the share price increases. The agreement also has inbuilt protection that the company can trigger to guard against excessive dilution.
http://www.proactiveinvestors.com.au/companies/news/6331/gold-anomaly-inks-67m-funding-agreement-to-develop-gold-projects-6331.html
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