Revolver Resources Secures Convertible Note for Dianne Copper Mine Development
REVOLVER RESOURCES HOLDINGS LTD (RRR) Share Update August 2024 Tuesday 27th
Revolver Resources Secures $900,000 in New Funding
Revolver Resources Holdings Limited (ASX: RRR) has announced the successful execution of a convertible note facility with Obsidian Global GP, LLC, securing A$900,000 in new funding to advance the Dianne Copper Mine pre-development workstreams.
Instant Summary:
- Convertible note facility executed with Obsidian Global GP, LLC.
- A$900,000 in new funds to advance Dianne Copper Mine pre-development.
- 18-month maturity with zero interest payable, except in case of default.
- Convertible at Obsidian’s election before maturity at A$0.14 or 90% of the average lowest 5 daily VWAPs.
- Funding supports comprehensive Dianne development finance initiatives.
- Targeted positive Final Investment Decision (FID) in H2 2024 and first copper cathode production in H2 2025.
Funding Details
Revolver Resources Holdings Limited (ASX: RRR) has executed a convertible note facility agreement with Obsidian Global GP, LLC, an experienced resource financier. This agreement will provide Revolver with A$900,000 in new funds to further advance the pre-development workstreams for the Dianne Copper Mine.
The convertible note has an 18-month maturity and zero interest payable, except in the event of default. Obsidian has the option to convert the note at any time before maturity at a price of A$0.14 per share before 1 November 2024, or at the lesser of A$0.14 or 90% of the average of the lowest 5 daily VWAPs during the 20 trading days prior to conversion after 1 November 2024.
Strategic Importance
This funding will act as bridge financing as Revolver advances its broader project finance initiatives for the Dianne Copper Mine restart. The company has recently executed a Memorandum of Understanding (MoU) with China Copper Industry Investment Alliance (CCIIA) to support these initiatives.
Revolver's Managing Director, Pat Williams, emphasized the flexibility of this finance arrangement, which aims to deliver further working capital while minimizing shareholder dilution. The company is focused on advancing commercial discussions for predominantly asset or joint venture level funding of the Dianne restart, with minimal or no direct dilution of Revolver shareholders.
Project Timeline
The Dianne Copper Mine restart represents a relatively low development risk and capital-lite production opportunity for Revolver. The company is targeting a positive Final Investment Decision (FID) in the second half of 2024 and aims to commence the first production of LME-grade copper cathode in the second half of 2025.
Revolver continues to advance key workstreams and commercial discussions to ensure the successful delivery of the Dianne Copper Mine project over the next 12-18 months.
The injection of A$900,000 in new funds will provide Revolver Resources with the necessary capital to advance the pre-development workstreams for the Dianne Copper Mine. This funding is crucial for the company as it progresses towards a positive Final Investment Decision (FID) and the commencement of copper production.
The flexible terms of the convertible note, including the zero interest payable and the conversion options, are designed to minimize shareholder dilution and provide financial stability. This should bolster investor confidence in the company's strategic direction and its ability to secure additional funding for the project.
Investor Reaction:
Analysts are likely to view this funding announcement positively, as it demonstrates Revolver's ability to secure necessary capital without significantly diluting shareholder value. The terms of the convertible note are favorable, and the targeted timeline for the Dianne Copper Mine project aligns with investor expectations for near-term production milestones.
However, investors will be closely monitoring the company's progress in securing additional funding and advancing the project towards production. Any delays or setbacks could impact investor sentiment and the company's stock price.
Conclusion:
Revolver Resources' execution of the convertible note facility with Obsidian Global GP, LLC marks a significant step forward in the development of the Dianne Copper Mine. Investors should keep an eye on the company's progress towards securing additional funding and achieving key project milestones. The successful delivery of the Dianne Copper Mine project will be crucial for maintaining investor confidence and driving long-term value.