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Alphamin Resources to raise C$51.3M for Bisie project, general working capital


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Alphamin Resources to raise C$51.3M for Bisie project, general working capital

Alphamin Resources Corp. aims to raise up to C$51.3 million through a best efforts private placement, with Sprott Capital Partners and Tamesis Partners LLP acting as agents, and a separate nonbrokered private placement with 44.4% shareholder Tremont Master Holdings Ltd.

The best-efforts private placement will comprise up to 81,454,000 Alphamin units at 35 cents apiece, while the financing deal with Tremont will comprise 65,046,000 units at the same price, according to the June 5 release.

Each unit will include 1 common share and 0.5 of a share purchase warrant, with each whole warrant exercisable at 43.75 cents per share for a 36-month period from closing, subject to adjustment in certain events and an acceleration clause.

Alphamin also granted the agents a 15% overallotment option, exercisable at any time until 24 hours before closing of the best efforts offering.

Both placements are expected to close on or about June 28, subject to various conditions.

Proceeds are earmarked for the continued development of Alphamin's majority-owned Bisie tin property in the Democratic Republic of the Congo and for general working capital.

Alphamin further noted that the Industrial Corporation of South Africa, or IDC, received credit committee approval for an investment to finance its 15% pro rata share of Bisie's equity funding requirement. The IDC owns a 14.25% stake in the project, while the government holds a 5% free carried interest.

The miner also said it continues to work on completing due diligence and securing unconditional commitments after executing nonbinding term sheets for US$80 million of project debt for Bisie in May.

The balance of construction funding is expected to be raised as equity in parallel with the completion of debt funding, according to the company.