GreenBank Capital Inc (CSE:GBC) told investors that it has further increased the number of shares it holds in Ubique Minerals Limited following a private placement by the mining company.
The next-generation merchant banking business said it participated in the private placement to take its shareholding to 18.26% after Ubqiue announced it was acquiring a 90% interest in a Namibian mining production company.
"We are pleased to be increasing our shares in Ubique, via the private placement, especially to support the quick development of the Namibian Lead and Zinc Mining production opportunity,” GreenBank CEO and chairman Terry Pullen said in a statement.
READ: GreenBank Capital says its portfolio company Ubique Minerals will buy 90% of Namibian mining firm
As part of that financing participation, GreenBank said it also secured a further 666,666 warrants over Ubique shares exercisable at a price of C$0.20 per share and valid for 24 months.
This is in addition to the 4,000,000 Ubique warrants it already holds at C$0.075, which are valid until July 2023.
GreenBank said the Ubique Namibia Project consists of a lead-zinc mine located near Swakopmund, Namibia that was built in 2018-2019 and operated until April 2020.
The project was put into care and maintenance due to health and safety concerns related to the coronavirus (COVID-19) pandemic as well as the closure of the border with South Africa, from where it sourced key supplies.
Since April 2020, it said the project has been maintained in a ready-to-restart status, including maintaining access to the mine and intermittent functional checks of process plant components.
“It is positive to feel the support from the largest shareholders and management in the funding round that Ubique is currently undertaking,” Unique CEO Vilhjalmur Vilhjalmsson commented. “We look forward to successfully conclude the Namibian transaction and become a producing mining company next year."
GreenBank invests in multi-sector undervalued public and private growth companies focused on building consistent capital appreciation for its shareholders. It has a flexible low-cost overhead structure designed to maximize profitability.
Contact the author at stephen.gunnion@proactiveinvestors.com