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POLYMETALS RESOURCES LTD Capital/Financing Update 2023
65598_rns_2023-06-26_ce715c6f-e120-44a0-b66d-fec4309533af.pdf
Capital/Financing Update
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ASX Announcement
ASX: POL
27 June 2023
BINDING TERM SHEET FOR A$15 1 MILLION PRE-PAYMENT FACILITY
Strategic partnership paves way for metal production
HIGHLIGHTS
- US$10 Million Concentrate Pre-payment Facility.
- 5-Year Zinc & Silver-Lead Offtake with Global Trading Firm Ocean Partners UK
- A$500,000 Equity Investment
Polymetals Resources Ltd (ASX: POL) ("Polymetals" or the "Company") is pleased to announce that is has entered into a binding Term Sheet with Ocean Partners UK Limited ("OPUK") for an unsecured US$10 million pre-payment funding facility which will provide development funding and working capital for the recommencement of mining and processing operations at the Company's underground Silver-Zinc-Lead, Endeavor Mine in the Cobar basin, NSW.
PRE-PAYMENT FACILITY – KEY TERMS
| ITEM | TERMS | |
|---|---|---|
| Lender | Ocean Partners UKLimited | |
| Contract | 5-Year Offtake of Zinc & Silver-Lead Concentrates | |
| Facility Amount | US$10 million | |
| Interest Rate | SOFR2 +12-month7.0% | |
| Term | Up to 36 months | |
| Security | Unsecured | |
| Share Subscription | A$500,000 equity investment | |
| Key Conditions Precedent | Signed Zinc and Silver-Lead Concentrate Offtake Contracts.1.ExecutedConcentrate Prepayment FacilityAgreement.2.Third-party confirmationof EndeavorMine Restart Study(MRS).3. |
1 USD Denominated equivalent AUD:USD = 0.66
2 SOFR: Secured Overnight Financing Rate
ASX: POL
ABOUT OCEAN PARTNERS
Ocean Partners offers a complete range of trading services for miners, smelters, refiners, and metal consumers around the world. Working closely with global partners Ocean Partners offer customised risk management while linking clients to unique market opportunities.
Ocean Partners operates in a number of countries, including Canada, Chile, China, Cyprus, Mexico, Mongolia, Netherlands, Peru, Taiwan, Turkey, United Kingdom, and the United States, and retains agency representation in Argentina, Australia, Bolivia, Brazil, Chile, Ecuador, India, Japan, South Africa, South Korea and Central/Eastern Europe.
https://oceanpartners.com/
Polymetals Resources Executive Chairman, Dave Sproule said,
"Polymetals has had a long relationship with Ocean Partners stretching over 20 years. The support shown by this early endorsement via the Pre-payment Facility and Equity participation is testament to the confidence Ocean Partners has in the Polymetals Team and the potential of the Endeavor Mine. The partnership with Ocean Partners allows Polymetals to do what is does best, focused on recommencement of operations at the Endeavor Mine."
This announcement was authorised for release by the Polymetals Resources Ltd Board.
For further information, please contact:
| Linden Sproule | John Haley |
|---|---|
| Corporate Development | Chief Financial Officer / Company Secretary |
| [email protected] | [email protected] |
ABOUT POLYMETALS
Polymetals Resources Ltd (ASX: POL) is an Australian mining and exploration company with a project portfolio with significant potential for the discovery and development of both precious and base metal resources. With our cornerstone asset the Endeavor Silver-Zinc-Lead Mine, Polymetals is seeking to become a long term, consistent and profitable base and precious metal producer. Polymetals holds a strong exploration portfolio for organic growth, are development driven and continually measure strategic acquisition opportunities. POL is committed to developing genuine long-lasting relationships within our community, building strong relationships with investment partners, local stakeholders and providing our shareholders with capital growth and dividends. For more information visit www.polymetals.com