Category Archives: Financing

BVI-based mining company published fundraise update

Chaarat, the AIM–quoted exploration and development company incorporated in the British Virgin Islands, announced that it has reassessed its borrowing needs and is reducing its current convertible debt placement from US$100 million to US$50 million. The reduction significantly reduces dilution for existing shareholders. It has been prompted by positive developments surrounding company’s proposed acquisition of polymetallic asset and accelerated project funding arrangements.

Also, the BVI company has completed the first phase of its fundraising, receiving commitments for approximately US$17.6m from new and existing customers. The company is now targeting commitments for up to US$50 million, and plans to raise the remaining US$32.4 million as soon as possible. The second phase of the fundraise, as announced on 28 August 2018, is ongoing and is expected to close by the end of September/early October 2018. Following positive feedback from potential investors, Chaarat will amend the terms of the up to US$100 million Convertible Notes. Upon closing of phase two of the fundraise, Chaarat will apply for a listing of the 2021 Notes, anticipated to be on the Frankfurt Open Market.

Harneys acts as counsel for BVI company €1.3 billion financing

Harneys, one of the oldest law firms having offices in the British Virgin Islands and other jurisdictions, acted as a Cypriot counsel to the mandated lead arrangers including National Westminster Bank PLC, Santander UK PLC, UBS Limited and Unicredit Bank AG, in relation to the financing given to Playtech Plc, approximately in the amount of €1.3 billion.

Playtech is the world’s largest online gaming software supplier traded on the London Stock Exchange and registered in the British Virgin Islands, offering cutting-edge solutions to the leading operators working in the industry.

Nautilus Minerals signed Funding Mandate Agreement with BVI company

Sea exploration company Nautilus Minerals Inc. entered into a Funding Mandate Agreement with Deep Sea Mining Finance Ltd, a newly incorporated private company in the British Virgin Islands. According to the agreement, the international expertise and financial relationships of two major shareholders of Nautilus Minerals will be used to assist in advancing the development of Solwara 1, the company’s copper-gold project under development.

The BVI company is intended to be 50 per cent owned by USM Finance Ltd, a wholly-owned subsidiary of USM Holdings Ltd, an affiliate of Metalloinvest Holding (Cyprus) Limited , and 50 per cent owned by Mawarid Offshore Mining Ltd., a wholly-owned subsidiary of MB Holding Company LLC.

Deep Sea Mining Finance has been appointed as the exclusive financial advisor of Nautilus, in respect of US$350 million financing needed to complete the development of the Solwara 1 Project. The exclusive right of the BVI-incorporated company may be terminated, however, if it fails to arrange binding commitments in respect of financings of at least US$50,000,000 by December 4, 2017 (Interim Financing). Nautilus will pay to DSMF an initial retainer fee of US$75,000, and an additional fee of US$30,000. Also, it will pay US$350,000 as reimbursement for costs and expenses of DSMF incurred in connection with the Interim Financing.

The agreement will remain in effect until the earlier of January 1, 2019. It is subject to receipt of all necessary approvals from the TSX.

West African Iron Ore signs debenture financing agreement with BVI company

West African Iron Ore Corporation, the TSX-listed company focused on development of its mineral resources in the Republic of Guinea, announced that it has arranged an unsecured convertible debenture financing agreement with Sky Alliance Resources Inc. – a privately owned international mining and consulting firm incorporated in the British Virgin Islands and based in Hong Kong.

The BVI company will finance up to CAD$2.0 million by up to four drawdowns of CAD$500,000., each of them in the form of a convertible debenture with 8% annual interest rate and a term of 5 years. During this term, Sky Alliance Recources will have the option to convert all or any portion of the outstanding Debentures into common shares of West African, at a price of CAD$0.10 per share for the first CAD$500,000, and for all other drawdowns at the market price at the time of drawdown, subject to a minimum conversion price of CAD$0.10 per share.

BVI-registered Sky Alliance Resources, directly and through its wholly-owned subsidiary, has ownership and control of 24,697,000 common shares of West African, which represent14.09% of the issued and outstanding common shares of the Canadian company. Assuming conversion of the first drawdown of the debenture, Sky Alliance would own and control 29,697,000 common shares, representing 16.49% of the then issued and outstanding common shares of WAI.

The debenture was acquired by the BVI company for investment purposes. Sky Alliance’s shareholders plan to fully support West African’s efforts to complete its initial NI43-101 technical report and raise additional funds for business development.