NGEx secures US$3 million credit facility
NGEx Minerals Ltd. [NGEX-TSXV] has obtained a US$3.0 million credit facility that it will use to provide financial flexibility to fund the company’s continuing work programs and provide general working capital.
The facility has a term of 12 months ending September 28, 2023. No interest is payable during the term of the debenture.
The facility has been issued by Zebra Holdings and Investments Sarl and Lorito Holdings and Investments Sarl, companies controlled by a trust settled by the late Swedish financier Adolf Lundin, and insiders of the company. The terms of the facility include the company issuing to the lenders, subject to the approval of the TSX Venture Exchange, 12,500 common shares of the company upon closing of the debenture and 200 common shares of NGEx Minerals per month for each US$50,000 of the facility outstanding from time to time up to the maturity date.
All securities issued on conjunction with the facility will be subject to a four-month hold period under applicable securities law.
On Friday, NGEx shares eased 5.7% or 12 cents to $1.98. The shares are currently trading in a 52-week range of  $4.22 and 75 cents.
NGEx has said it will deploy the majority of funds in its treasury to finance ongoing work programs at Los Helados in Chile and Valle Ancho in Argentina.
NGEx is the majority partner and operator at the large-scale Los Helados copper-gold deposit, subject to a joint exploration agreement with Nippon Caserones Resources Co. Ltd. The project is located in Chile’s Region 111.
Los Helados is located 16 kilometres north of the Filo del Sol deposit where Filo Mining Corp. [FIL-TSXV, NASDAQ First North] is drilling a major copper-gold discovery. Filo del Sol and Los Helados lie along the same major northeast-trending structure which controls a series of alteration zones, representing high-quality exploration targets, between the two deposits.
Recent drilling at Los Helados returned 1,016.3 metres at 0.65% copper equivalent (CuEq) from a depth of 42 metres, including 294 metres at 0.87% CuEq from a depth of 201 metres, and 140 metres at 0.83% CuEq from a depth of 606 metres.
Earlier this year, the company said initial results from the ongoing brownfield drill program at Los Helados confirmed continuity of the high-grade core of the deposit and extension of this high-grade material in multiple areas.
The 2022 drill program at Los Helados was designed to further define and potentially extend the high grade core of the Lost Helados deposit, which is defined by a 0.7% copper equivalent (CuEq) shell within the current mineral resource model. The program was also expected to probe for potential satellite high-grade zones.