Tulla Resources Plc (ASX: TUL) ("TUL", the "Company") is pleased to advise that the Company has executed an investment committee approved term sheet ("Term Sheet") through Nebari Partners, LLC ("Nebari") for US$21.5m secured credit facility.
The credit facility is comprised of a Debenture Loan Facility of US$13.5m and a Convertible Loan Facility of US$8m (collectively, the "Loan Facilities"). The Loan Facilities, combined with the Company's existing cash and liquid investments, provide the Company with sufficient liquidity to cover its contribution to the current forecasted costs associated with bringing the Central Norseman Gold Project ("Project") into commercial production.
The Term Sheet has been approved by Nebari's investment committee and the Loan Facilities are subject to final documentation and other conditions precedent typical for this type of transaction, including in relation to the grant of security over the Company's joint venture interest in the Project, among other collateral.
Tulla Resources' Executive Director, Mark Maloney, said:
"We are delighted that Nebari has agreed to fund the Company, which will enable us to meet our JV obligations through to production and positive cash flows. This commitment by Nebari following their extensive due diligence is further validation of the Norseman Gold Project. We look forward to developing a strong relationship with Nebari."
Highlights:
- US$21.5m (A$30.2m1 ) in debt funding as set out in the Term Sheet. The Loan Facilities consist of a US$13.5m Debenture Loan and a US$8m Convertible Loan
- Weighted average coupon rate of approximately 7.5% plus Term SOFR Delta
- Debenture Loan coupon rate of 9% plus Term SOFR Delta
- Convertible Loan coupon rate of 5% plus Term SOFR Delta
- Limited financial covenants relating to cash and working capital balances
- Attractive amortisation profile of the Debenture Loan with no amortisation payable until the 12th month from closing and a bullet repayment for the Convertible Loan
- No hedging required, allowing shareholders of the Company to retain full exposure to the gold price
- The Loan Facilities, combined with existing cash on hand and liquid investments means that, based on current forecasts, the Company is funded to contribute its share of the expected costs associated with bringing the Project into commercial production
