Vendetta Mining Corp announced that Singapore J&Y Investment Pte. Ltd has agreed to make a $4,772,000 investment in the company by way of a non-brokered private placement in two tranches.
The Canadian junior exploration company said the first tranche will be comprised of 5,454,545 common shares at $0.055 per share for gross proceeds of $300,000. The second tranche will be comprised of 54,206,060 shares at $0.0825 each for gross proceeds of $4,472,000.
Following the closing of the private placement, Vendetta said Singapore J&Y Investment will hold approximately 19.89% of its stock.
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Vendetta said proceeds from the first tranche will be used to retire a portion of a loan from Nebari Holdings LLC, while proceeds from the second tranche will be used to retire a further portion of the loan from Nebari, advancement of its Pegmont project in Australia, as well as for general working capital purposes.
Under a rights agreement connected to the private placement, Vendetta said Singapore J&Y Investment will be granted the right to nominate a director to its board of directors and will have certain information rights and the right to participate in future financings to maintain its percentage interest at up to 19.9%, in each case for so long as it maintains a minimum 10% equity interest in the company. The Investor Rights Agreement also provides that the company will have the right to place any shares proposed to be sold by Singapore J&Y Investment.
Vendetta noted that closing of the first tranche of the private placement is subject to customary closing conditions, including the approval of the TSX Venture Exchange, while the closing of the second tranche will be subject to customary closing conditions, including exchange approval, approval by the Australian Foreign Investment Review Board and the investor's satisfactory completion of due diligence.
The company said it anticipates that these approvals could take up to 90 days.
Vendetta’s 100% owned Pegmont lead-zinc project is situated in the Mount Isa-McArthur Mineral Province, Australia which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several significant lead-zinc-silver mines.
Contact the author at stephen.gunnion@proactiveinvestors.com