Impact Minerals (ASX:IPT) has completed legal documentation for funding of up to $7.3 million from Squadron Resources Pty Ltd and has appointed its nominee Aaron Hood as a non-executive director.
In July, the company secured the funding from Squadron, which is privately owned by Andrew Forrest’s Minderoo Group.
Forrest remains the chairman of Fortescue Metals Group (ASX:FMG), of which he owns around one-third.
This reflects the potential of its assets including the Broken Hill Project in New South Wales where drilling at the Red Bore Prospect returned some of Australia’s highest ever platinum grades.
Highlights included a 30 metre thick zone at 6 grams per tonne platinum equivalent as well as 5 to 10 metre thick zones at 15g/t platinum equivalent.
Hood is the chief investment officer for the Minderoo Group and is responsible for managing its existing investment portfolio, comprising mining, property, agriculture and industrial assets, and also corporate development opportunities.
Prior to joining Minderoo, Hood spent 10 years in Sydney and Perth as executive director of a private equity firm with investments in mining services, oil and gas, manufacturing and retail.
Impact has also engaged Squadron chief geologist Dr John Clout as a technical consultant.
Clout played a key role in the discovery and development of the world class Pilbara iron deposits for FMG.
Squadron Investment
The first tranche of $2 million in secured convertible notes and 45,000,000 unlisted call options is now effectively completed.
Tranche 2, which consists of the issue of 47,619,047 ordinary shares to raise $1 million and 26,428,572 attaching unlisted call options, is subject to shareholder approval to be sought at Impact’s annual general meeting in September.
In addition, Squadron can at its sole discretion invest a further A$1 million into either or both of Impact’s high grade Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects, to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on the two projects.
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