Golden Rim Resources Ltd (ASX:GMR, OTC:GMRMF) has secured additional funding for working capital and exploration of its flagship Kada Gold Project in Guinea by entering into a Convertible Note Deed with major shareholder Capital DI Limited worth $1.5 million.
The note deed matures six months from the date of issue, convertible at any time in whole or in part, with a conversion price pegged at the lowest price of shares issued in GMR’s capital raises before the maturity date – with a minimum price of $0.017 per share.
Advancing Kada Gold Project
“The company appreciates the support of Capital DI Limited in subscribing for this convertible note which allows the company to continue to move forward with its exploration strategy at its flagship project, the Kada Gold Project in Guinea,” Golden Rim Resources managing director Tim Strong.
The Kada Project holds a maiden inferred mineral resource estimate of 25.5 million tonnes at 1.1 g/t gold for 930,000 ounces of gold.
The company is currently focused on growing this resource, which mostly consists of shallow oxide gold.
The full terms of the Note Deed include:
- A$1.5 million value.
- Matures six months from the date of issue.
- Convertible by Capital at any time in whole or in part, subject to any necessary shareholder and regulatory approval.
- Conversion price is the lowest cash issue price of shares at which the company raises capital before the maturity date provided that if the issue price is less than $0.017 per share, the conversion price shall be $0.017 per share.
- 11.5% interest per annum, payable monthly, or capitalised if not paid.
- Unsecured.
- To the extent that the note is not already converted or redeemed, the note will be converted into shares on the maturity date subject to any necessary shareholder and regulatory approval.
- The note does not provide for any voting rights at shareholder meetings of the company.
- The noteholder is not permitted to transfer all or any part of the note without the prior written consent of the company.