For the two year facility, SAFM will issue Deutsche Bank some 20.4 million shares with 5 year option representing 5% of the company at an exercise price of a 50% premium to the 30-days weighted average share price.
Commenting on the developments, SAFM CEO Stephen Turner was qouted by Mining Weekly as saying, "Further to the progress on our bankable feasibility study and the increase of our resource that has been announced to the market, we are pleased to have secured the requisite funding to both complete our bankable feasibility study and provide additional working capital."
The company has undertaken an expanded definitive feasibility study to enhance the capacity at Ponto Verde from current 1.5 million tons a year to 8 million tons a year.
The Ponto Verde project houses resource of some 301.6 million tons at grading of 40.65% iron. The expansion of the mine is scheduled for completion by the end of 2015.
