PYX Resources Ltd (LSE:PYX, NSX:PYX) said that, following the company's announcement on 3 October 2022, it has made the first drawdown on the £20mln capital commitment investment from GEM Global Yield LLC SCS (GGY).
As previously announced, GGY intends to provide long-term support to PYX in accordance with the capital commitment facility, with the proceeds from the capital investment furthering the company's efforts to upgrade its mining operations and increase its production volumes. The investment positions PYX to continue its growth.
The company said it has issued its first subscription notice in relation to the capital commitment facility to draw down total gross proceeds of £402,056, the proceeds of which have been received by the company today.
In line with the capital commitment facility, GGY has received 1,030,923 shares from a share provider previously selected by the company - a third party that already holds shares in the company - which has also executed a Deed of Adherence to the capital commitment facility. The shares have been transferred at a price of £0.390 per share.
The price of each GGY share has been calculated in accordance with the terms of the capital commitment facility, as outlined in the 3 October 2022 announcement and the total shares now held by GGY is 1,030,923 ordinary shares, representing 0.24% of the issued shares in the company.
In consideration of the share provider transferring the relevant shares to GGY, PYX has committed to issue an equivalent number of new shares - 1,030,923 new ordinary shares - to it in the next 12 months, utilising the company's 15% placement capacity under the NSX Listing Rules. A further announcement will be made when the new shares are issued, the company said.