Pursuant to the agreement RKMF will make an equity investment in Oracle Mining of $10m and purchase a 3% net smelter returns royalty on the Oracle Ridge Copper Mine for an additional $10m.
RKMF will also secure for Oracle a $15m loan facility for the development and construction of the Oracle Ridge Copper Mine and purchase 100% of the annual copper concentrate production for the life of the mine.
Oracle Mining chairman Paul Eagland said, "The completion of these transactions will represent a significant step forward in satisfying our pre-production capital needs, particularly when combined with the potential proceeds from the US$70 million loan facility as contemplated by our indicative term sheet with Credit Suisse, signed earlier this year."
