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."
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