- Yolanda Torrisi
- +61 412 261 870
- yolanda@yolandatorrisi.com
- Nina van Wyk
- +27 82 926 3882
- nina@africanminingnetwork.com
Handa Mining Corporation has completed the debt financing of US$750,000 with proceeds to help fund construction of a processing plant for the Nababeep Copper Oxide Project in the Northern Cape Province of South Africa.
The company has also received approval from the TSX Venture Exchange for the joint venture agreement (JVA).
The JVA was signed in February 2019 with O’Okiep Copper Company and SHIP Copper to fund and build a processing plant that will recover copper from broken rock lying on the surface of properties held by the property owners in the Northern Cape Province, about 600km north of Cape Town.
In line with the JVA, for the first 24 months of copper production from the plant, Handa and its lending consortium will be entitled to 65% of any profits generated by the plant.
Following this period, the profit interest payable to the group will decrease to 33%.
The financing was funded in two tranches:
• US$350,000 was advanced by a consortium of five arm’s length lenders who provided the funds to Handa on an interest-free basis.
These funds are repayable within two years of commencement of production at the plant and the consortium lenders are entitled to share in an aggregate of 35% of the profit interest attributable to the group on a pro rata basis.
In addition, an aggregate of 1.365 million common shares of Handa and 2.275 million warrants were granted to the consortium lenders.
Each bonus warrant entitles a consortium lender to acquire one common share of Handa at a price of $0.05 for a period of four years from the date of issuance.
• US$400,000 of the financing was advanced by Mastomode (Pty) Ltd, a company partially owned by one of the directors of Handa and backed by a private lenders’ group.
The funds advanced by Mastomode were provided on an interest-free basis and will mature on the maturity date. Mastomode is entitled to 45% of the profit interest attributable to the group but did not receive any bonus shares or bonus warrants.