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Alien Metals Ltd - mineral explorer and developer in Australia, Mexico and Greenland - Enters convertible debt funding facility with long-term shareholder Bennelong Resource Capital Pty Ltd, which has a current stake of 6.3%. Will issue convertible securities worth of up to $1.0 million in two equal tranches of $500,000 each. Each can be converted into a share at a 15% discount to the market price, now or at the time of conversion, or at the price of any equity raise by Alien Metals. Until then, the securities carry an interest rate of the secured overnight financing rate plus eight percentage points. There also is a commitment fee of 3.0% of the facility and an establishment fee of $10,000, both to be taken from the first tranche of the drawdown. Alien Metals also will issue Bennelong with warrants for 10.0 million shares at a 35% premium to the current market price, exercisable over the next three years. It says this could raise up to an additional $1 million. Alien Metals says the facility will meet its immediate and medium-term capital needs. It adds that it will provide a strategy and board structure update in later this month. Current trading share: 0.36 pence, down 2.3% 12-month change: down 48% Copyright 2023 Alliance News Ltd. All Rights Reserved.
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