Terrain Minerals Limited (ASX:TMX)
The facility will provide funds over the next three years, to further develop proposed mining operations and test established exploration targets.
Fortrend has agreed to provide up to A$5 million to TMX to be drawn down at TMX's discretion by the issue of shares to Fortrend. TMX has the right but not the obligation to use the facility at any time over the facility's 3 year term. TMX can determine the timing and amount of any drawdown within the provisions of the facility agreement. The facility does not preclude any other equity or debt arrangements that TMX may decide to use to fund its projects.
In the event of a draw down, shares will be issued at a 10% discount to the volume weighted average price calculated over the 15 days prior to the draw down notice. In addition Fortrend will receive 1 option for every 4 shares issued. The strike price of the option will be the issue price of the shares issued to Fortrend.
TMX Managing Director, Keith Wells said that "TMX is delighted that after a detailed review of the company and its prospects, Fortrend has agreed to make available the A$5m facility".
Fortend CEO, Joe Forster said that "Terrain has some very exciting gold and nickel prospects. We are delighted to be able to help Terrain fund the development of these projects"
Further information regarding Terrain's projects and exploration programs can be found on the Company's website,
About Terrain Minerals Limited
Terrain Minerals Limited is engaged in the exploration of gold and other mineral resources. It holds four projects: Bundarra, East Kambalda, Redcastle and Euro. Bundarra is located 70 kilometers north of Leonora. A combined RC and Diamond Drilling program totaling more than 16,000 meters was completed in April 2008. The Bundarra (Celtic) Project, which is 100% owned by Terrain, includes the Black Cat joint venture, and the Great Western prospect. The project area covers 100 square kilometers and encompasses all the major gold prospects in the Bundarra area. The Redcastle Project covers an area of gold workings, with a recorded historical production of 3,000 tons. The Euro project lies immediately to the West of the Euro Mining Centre. The East Kambalda project lies 10 kilometer northeast of Kambalda. The project area covers three north-westerly trending belts of volcanics separated by sediments. Arocom Pty Ltd is the Company’s wholly owned subsidiary.
Terrain Minerals Limited