Empress Royalty Corp (TSX-V:EMPR, OTCQB:EMPYF) announced it has struck a US$15 million credit agreement with Nebari Natural Resources Credit Fund I LP.
Nebari is a private fund focused on financing bespoke debt and convertible debt facilities for public and private companies within the resources sector.
The Vancouver-based royalty and streaming company said it will use the accordion credit facility to help acquire new investments to add to its current 17-project portfolio.
Empress said it expects to draw down an initial amount of US$4.5 million.
The company may also apply to Nebari to draw down additional loans if and when it identifies prospective investment opportunities.
“The Nebari facility provides Empress with further financial flexibility and capacity to build our portfolio,” Empress CEO Alexandra Woodyer Sherron said in a statement.
“The facility combined with the projected revenue from our current investments will accelerate our development plans and is the first catalyst of many, solidifying Empress’ path to continued growth and creation of shareholder value in the year ahead.”
The accordion facility has an initial two-year term and is secured against existing investment assets. It will bear interest at Libor (1% floor) plus 10% per annum, and an arrangement fee of 2% of each loan made is payable on closing together with reimbursement of Nebari’s costs for each loan made.
“We are very happy to be entering into this Accordion Facility with Empress Royalty and helping to support its objective of growing its portfolio of royalty and streams and creating shareholder value,” Juan Alvarez, managing partner of Nebari said.
In connection with the initial loan, Empress will issue 7.5 million warrants to Nebari, which are exercisable into one share for two years at a price of $0.27.
Empress has strategic partnerships with Endeavour Financial and Terra Capital (AIM:TCA), which allow it to access global investment opportunities and bring unique mining finance expertise, deal structuring and access to capital markets.
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Story by ProactiveInvestors
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