- IMC International Mining (CSE:IMCX) has entered an C$8 million draw-down equity financing agreement with Alumina Partners, LLC
- Under the agreement, Alumina will purchase up to $8 million with of the company’s units, each of which contain one common share and one share purchase warrant
- The purchase price of the units represents an on-market discount of roughly 15 to 25 per cent
- Funds from the financing will be used to continue exploration and acquisition efforts
- IMC International Mining (IMCX) is currently up 7.32 per cent to $0.88 per share, with a market cap of $26.68 million
IMC International Mining (CSE:IMCX) has entered an C$8 million draw-down equity financing agreement with Alumina Partners, LLC.
The New York-based private equity firm has a long history in mining, and has previously made substantial investments in a broad range of publicly traded companies.
Under the terms of the 24-month agreement, Alumina Partners will purchase up to $8 million worth of IMC’s units. Each unit will comprise of one common share in the capital of the company, as well as one common share purchase warrant.
While the sale price of each unit has not been disclosed, IMC says that the price represents a discount of between 15 and 25 per cent compared to on-market prices.
The exercise price of the share purchase warrants is expected to be at a 50 per cent premium over the market price of the shares.
Adi Nahmani, Managing Member of Alumina Partners, said that he is pleased to be supporting IMC in the acceleration of their exploration pipeline.
“We are very confident in management’s extensive experience and impressive collective track record, and look forward to getting more upside exposure to this early metals super cycle,” he added.
Proceeds from the financing will enable IMC to continue with its exploration and acquisition efforts while maintaining financial flexibility and freedom.
Brian Thurston, CEO of IMC International Mining, said that the agreement will allow the company to better plan for future exploration programs.
“Such major investments are not common in the early stages of exploration properties such as we have on the Thane Property and we are excited to receive such a significant commitment from Alumina Partners, LLC.
“This serves as meaningful validation of our business plan and growth strategy,” he concluded.
IMC International Mining (IMCX) is currently up 7.32 per cent to $0.88 per share at 1:02pm EST.