The investment proposal provided for a metal stream of 15% of the life-of-mine production of silver ounces from its projects including Texas, Twin Hills and Mount Gunyan. The agreement also provides it with a right to purchase the metal stream at a price per ounce equaling the lesser of $6.50per ounce or 80% of the prevailing market price.
Further, the arrangement also offers provisions for additional investment in the future through the issue of some 200-million options at a 50% premium to the current 30-day volume weighted average price in the period immediately prior to the issue of options.
However, conditions including a minimum number of 100,000 ounces of silver being delivered within 18 months and security over company assets are also included, the company added.
Alcyone chairperson Paul Sylva stated that through this agreement the company is seeking substantial value from the estimated output of the Texas silver project, besides ensuring extra funds to support the company’s turnaround strategy.
"This potential investment, alongside the proposed equity raising, will place us on a much stronger financial footing," added Sylva.
Meanwhile, the company has also raised a further $1.2m through bridge financing, issuing promissory notes to assist the company
through to the completion of the rights Issue.
