Metals One PLC has secured a £4 million funding package from YA II PN, a fund managed by Yorkville Advisors Global. The company will use the funds to advance its gold projects in Africa and the Americas. It will also use some of the money for general working capital needs. The funding is structured as a senior promissory note. This allows Metals One to avoid issuing equity at current low share prices.
Key Details
Daniel Maling, managing director of Metals One, said the funding structure gives the company financial flexibility. He stated, "Cash talks, operating teams talk. And again our approach is let's get practical." The company now holds over £11 million in cash and liquid investments. This includes about £7-8 million in listed investments along with its projects.
The promissory note has a 7% annual interest rate, which increases to 18% if the company defaults. It will yield net proceeds of £3.74 million after fees. The company will repay the principal in equal monthly installments of 10% of the original amount. Additionally, Metals One will issue warrants equal to 100% of the note's value. These will be exercisable at a strike price set at 130% of the previous day's closing share price.
Background
Maling noted that the upcoming quarter is crucial for the company's growth plans. He specifically mentioned developments with Lions Bay Resources in South Africa and ongoing field activities in Peru. The company also plans to be active in its wholly owned Swales project in Nevada before the end of the year.
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This funding could positively affect Metals One's share price. It enhances the project pipeline without diluting existing shareholders. Investors may respond well to the company's focus on gold in the current market. Watch for updates on project developments and financial performance in the coming quarter.
Based on reporting by: proactiveinvestors.co.uk