Bushveld Minerals (LON:BMN) has agreed a new £2.6mln loan deal with Darwin Strategic to support the potential buy-out of Lemur Resources.
The company also today lodged its ‘bidders statement’ in Australia for the proposed transaction.
Last week, Bushveld launched its latest move for the 37.4% of Lemur which it doesn’t already own.
Bushveld‘s offer is six Aussie cents for each share, which values Lemur overall at AS$10.9mln (£5.6mln).
The Darwin arrangement is in addition to the £2.6mln funding deal with Riveridge, which was announced last week alongside the Lemur bid.
Fortune Mojapelo, Bushveld’s chief executive, said: "This facility provides us with flexibility in respect of the minimum acceptance conditions for our recently announced Offer for Lemur Resources.
“Significantly, Bushveld does not incur interest charges on both facilities simultaneously, but only on drawdown and it is the intention to get to the compulsory acquisition (roughly 90%) threshold in the first instance.”
At first Bushveld will draw just £400,000 from the Darwin facility, and further draw-downs are optional. The loans carry interest at 1.5% per month. Interest is payable in cash six months from draw down, or can be rolled-up and converted into equity at the end of the term alongside outstanding principal.