Anfield arranges $4.3 million uranium credit facility
Anfield Energy Inc. [AEC-TSXV, ANLDF-OTCQB, OAD-Frankfurt] has announced details of a $4.3 million credit facility with existing shareholder Extract Advisors LLC.
The company said the credit facility, in addition to Anfield’s recent equity financing, will support its asset transaction strategy, including the recent Marquez-Juan Tafoya transaction and ongoing work programs in pursuit of the Shootaring Canyon mill reactivation.
Anfield is a uranium and vanadium development company. Its asset portfolio includes the Shootaring Canyon Mill in Garfield County, Utah. Shootaring ranks as one of only three licensed, permitted and constructed conventional uranium mills in the U.S.
Under the terms of the credit agreement, Extract will provide Anfield with a single-draw, secured loan for $4.3 million. The credit facility will have a maturity date which is five years from the anticipated closing date, expected to be September 30, 2023.
The credit facility will bear a coupon rate of the Second Overnight Financing Rate (SOFR), plus 5.0% annually, payable semi-annually. Anfield, with written notice, may elect to capitalize the interest payable on the facility semi-annually, in arrears at a rate of SOFR, plus 7.0%
In connection with the facility, Anfield will issue 42.1 million warrants to Extract, with each warrant entitling the holder to acquire one common share at an exercise price of $0.095 per warrant for a period ending on the maturity date. For as long as the credit facility remains outstanding, all proceeds fro the exercise of the warrants by the lender shall be used to repay the principal amount of the credit facility.
Extract Advisors LLC is a natural resource fund manager with a focus on junior mining. Extract is based on Los Angeles and Toronto.
On Wednesday, Anfield shares were unchanged at $0.095, and trade in a 52-week range of 10 cents and $0.04.
News of the financing comes after Anfield recently completed the acquisition of Neutron Energy Inc., a unit of enCore Energy Corp [EU-TSXV, NYSE American] which holds the Marquez-Juan Tafoya uranium project in the Grants Uranium Mineral District, 65 kilometres northwest of Albuquerque, New Mexico.
The company has said Marquez-Juan Tafoya contains an historic resource of 18.1 million pounds of U308, meaning that more work is required to bring that estimate in line with NI 43-101 standards of disclosure.
Anfield CEO said the acquisition of Marquez-Juan Tafoya is in line with the company’s acquisition strategy which involves the pursuit of advanced uranium and or vanadium projects. “Moreover, the addition of Marquez-Juan Tafoya – now our largest single uranium project in terms of resource size – significantly expands our uranium resource base,’’ Dias said.
“With the global nuclear renaissance underway, we believe that our pursuit of advanced deposits that will facilitate near-term production is critical at this time as the global uranium supply deficit continues to grow,” he said. “As Kazakhstan pivots East to support China in its robust nuclear growth plans, an important piece of U.S. utility uranium supply is at risk. This scenario highlights an unquestionable opportunity for uranium producers in the U.S.”