Fundraising, Investment Agreement and grant of Warrants
· Fundraising from institutional investors (the "Facility") arranged by RiverFort Global Capital ("RiverFort")
· Issue price under the Facility of 0.7 pence per new ordinary share
· The Facility (which comprises a subscription of £0.8 million and an equity sharing agreement) to be used to fund the Company's continuing operations, including general working capital requirements
· Up to US$2 million Investment Agreement ('Investment') with YA II PN, Ltd arranged by Riverfort with an initial drawdown of US$400,000 repayable on the first anniversary of the date of drawdown. Any further tranches may be drawn down if agreed with the Company and at YA II's absolute discretion
· Grant of warrants
Richard Poulden, Chairman of Wishbone Gold, commented: "This is the first stage in an overall funding relationship with RiverFort that can lead to the funding of new deals at the project level. I have worked with Brian Kinane, CEO of RiverFort, in the past and have admiration for his skills in this area."
Graham Stirling, CIO of RiverFort, commented: "This innovative financing structure offered to Wishbone Gold by RiverFort will allow them to build on their solid progress to date. RiverFort believes in the future potential of Wishbone Gold and this funding is an integral part of assisting them in achieving this potential. It underlines our faith in Wishbone Gold's Board's ability to execute on their strategy."
Wishbone Gold Plc (AIM: WSBN), announces that it has agreed the Facility, which has been organised by RiverFort, and consists of two parts. The first part is a subscription to raise £0.8 million, before expenses, (the "Subscription") by way of a subscription for 114,285,714 ordinary shares of 0.1 pence each (the "Ordinary Shares") by a syndicate led by D-Beta One EQ Ltd and including Cuart Growth Capital Fund I (hereafter "the Syndicate") at an issue price of 0.7 pence per Ordinary Share (the "Subscription Shares"). The Subscription is conditional on admission of the Subscription Shares to trading on AIM ("Admission").
Of the gross proceeds of the Subscription, £200,000 will be retained by the Company and the balance of £600,000 will be returned by the Company to the Syndicate pursuant to the second part of the Facility, which is an equity sharing agreement (the "Equity Sharing Agreement"). The Equity Sharing Agreement entitles the Company to receive back those proceeds subject to the Settlement Formula on a monthly basis over a period of 18 months. It is also subject to adjustment upwards or downwards each month depending on the Company's share price performance during the previous month, as explained in more detail below. The Equity Sharing Agreement provides the opportunity for the Company to benefit from a positive future share performance. However, should the Company's share price not perform positively, then the Company will receive less than the amount it will return to the Syndicate (subject to pricing adjustment) and, if its share price falls substantially, the Company may have to return some or all the proceeds of the Subscription to the Syndicate.
link 2 July 17.
Beaufort do placings there were warrants with last one @ 1.3p two years.
Placing were 0.8p and 0.75p.
TW was in dark he claims and not happy.
Why would they not have phoned him if hes a holder and brought him inside ?
They attend his shows they ring far lesser people it doesn't really add up.
Wishbone Gold plc, the trading and exploration company focused on precious metals (gold and silver), today announces it has signed a joint venture agreement through its subsidiary, Wishbone Gold Honduras Ltd ("Wishbone"), with SION Honduras SA ("SION"), to fund the development and exploitation of existing gold mine sites in Honduras. SION is an associated company of Scotia International of Nevada Inc, a privately-owned mining equipment supply company based in the United States of America. SION has an agreement with the Honduran government to modernise and expand the Honduran mining industry.
The agreement provides that Wishbone and SION will provide equipment and expertise to existing small mines in Honduras to enable them to increase production. In return, the mines will agree to supply Wishbone's trading subsidiary Black Sand FZE with all the output from the mines at preferential prices.
The benefit to the mine is that the increased production means higher sales and higher profits. Wishbone and SION obtain security of supply at preferential prices and the Honduran government is guaranteed that all taxes will be paid by the mines.
The aim is to recover each investment within twelve months. Thereafter the margin remains shared equally with SION. The agreement runs for 30 years.
Richard Poulden, CEO and Chairman of Wishbone Gold commented: "Working with SION in this way implements Wishbone Gold's strategy of reverse integration into the small mining sector around the world. This secures supply and increases margins. The investment will enable exploitation of the substantial base of small mines in Honduras and will lead to an increase in output from these sources. All gold mined and recovered from these sites will be sold through Wishbone's trading subsidiary Black Sand FZE."
The following correction has been issued by Wishbone Gold to it's RNS Number 4221W of today. The RNS stated "The Company achieved its target of exceeding 25 kilos per week by the year end." This should have read "The Company achieved its budget of exceeding 25 kilos per week by the year end."
The Company has offered further clarification:
1. The Company's target for the year was 100 kilos per week while the budget was 25 kilos per week. The budget has thus been exceeded while the target was missed by the failure of one supplier to ship on time. There is no reason to believe that these shipments will not take place in the future.
2. The Indian duty rebate has not directly affected Wishbone's margins but has affected the overall market by ensuring more gold went to India than previously.
3. Wishbone's strategy remains unaltered: trading with steady reverse integration upstream to tie-in suppliers. This has worked thus far and the Board expect it to continue to do so.
The RNS from 8th Sept 2016 states "We are on track to meet our year end target of shipping 100 kilos per week." and the RNS today states "The Company achieved its target of exceeding 25 kilos per week by the year end."
The Company entered into a debt facility in June 2016 to support its gold trading, with shipments commencing in August 2016. Peak trading was in December 2016 with 105 kilos committed and sold during the month. The Company achieved its target of exceeding 25 kilos per week by the year end.
While volumes have been good in 2016, margins have been under pressure due to India's change in import rules which provides a premium for gold shipped to, and processed in, certain economic zones. Early estimates for 2016 suggest that India remains the largest ultimate purchaser of gold in the world followed by China, which is also the world's largest producer.
In December 2016, CEO of Wishbone Gold plc's subsidiary, Black Sand FZE, Barrett Kosh visited Peru and Chile as part of a UAE Trade Delegation, which provided a number of new opportunities for the Company and further announcements will be made as appropriate.
In 2017 the Company expects to continue its reverse integration by assisting with equipment purchases to further cement ties with its suppliers.
The Company also expects that the ongoing developments in early stage projects it has been working on since 2015 in Honduras and Ghana should move forward significantly this year.
In February representatives of the Company will be visiting Ghana at the invitation of the new government to review existing gold projects and new opportunities offered to the Company.
Chairman and CEO of Wishbone Gold plc, Richard Poulden, commented: "Overall this has been a transformative and successful year for Wishbone. The gold market remains extremely strong in volume terms which makes us believe that the oft quoted decline in production is failing to monitor the small producers which is our target supplier market. The traffic is inexorably east with small premiums over the world spot price appearing from time to time in India and Hong Kong."
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