Dart Mining (ASX: DTM) has received $5.3 million before costs from U.S. based institutional investor RK Mine Finance (Red Kite) under the first tranche of Red Kite’s investment into the Unicorn molybdenum project.
Red Kite had agreed to purchase up to a 3% Net Smelter Royalty in the project for $8.5 million and to inject new equity of up to $1.5 million into Dart in two tranches.
Dart has now received the first tranche of $4.5 million for the purchase of a 2% Unicorn Project royalty and an equity subscription of $0.8 million for 8,546,096 new Dart Mining ordinary shares at $0.0936 per share – a 10% premium to the 20 day VWAP.
Dart Mining also issued 4,273,048 unlisted options with an exercise price of 11.1 cents with a three year expiry.
The second tranche of Red Kite’s investment is subject to Red Kite being satisfied that certain milestones relating to the Unicorn Project (for example, demonstrated progress with the prefeasibility studies, with a particular focus on environmental approvals, tailings and metallurgy) have been satisfied.
Dart’s cash at bank is now $6.5 million, putting it in a strong financial position.
About Red Kite
Red Kite provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group.
Red Kite operates across the global metals industry from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney. Investors in Red Kite funds include college endowments, foundations, family offices, pensions and other institutional investors.
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