Temas Resources Corp, a Vancouver, British Columbia-based mineral exploration company, has entered into a letter of intent for an equity investment facility of C$5 million. The investor is Crescita Capital.
VANCOUVER, British Columbia–(BUSINESS WIRE)–Temas Resources Corp. (“Temas”) (CSE: TMAS) is pleased to announce that it has entered into a Letter of Intent (the “Letter of Intent”) for an equity investment of CAD$5 million (the “Equity Investment Facility”) with Crescita Capital LLC (“Crescita Capital”), representing the first major institutional backing for Temas.
The Equity Investment Facility is for an aggregate amount of CAD$5 million and Temas will have three years to utilize the CAD$5 million to expand and develop its assets. In addition, Temas may use the Equity Investment Facility as security, with the consent of Crescita Capital, to secure additional financing avenues if it so chooses.
Temas can draw down funds from the CAD$5 million Equity Investment Facility from time to time during the three year term at Temas’ discretion by providing a notice to Crescita Capital (“Drawdown Notice”), and in return for each Drawdown Notice funded by Crescita Capital, Temas will allot and issue fully paid shares to Crescita Capital (each, a “Private Placement”). The shares issued in connection with any Private Placement will be priced at the higher of (i) the floor price set by Temas and (ii) 90% of the average closing bid price resulting from the following ten days of trading after the Drawdown Notice (“Pricing Period”). The Drawdown Notice amount requested by Temas cannot exceed 700% of the average daily trading volume of the Pricing Period.
The Company has also agreed in connection with the Letter of Intent to pay a 3% commission ($150,000) in cash or shares at a deemed price of $0.25 per share and issue warrants equal to 8% of the outstanding shares of Temas at an exercise price of $0.25 per share for a period of three years (together, the “Commitment Fee”). The Commitment Fee will be paid upon the execution of a definitive agreement to be entered into between Temas and Crescita Capital in connection with the Equity Investment Facility. There is no interest attached to the Equity Investment Facility.
“The Equity Investment Facility with Crescita Capital will provide Temas with access to the necessary capital to aggressively continue the exploration and development of its properties” said Kyler Hardy, CEO of Temas. “This step gives us confidence that we can get our pending La Blache property acquisition through the feasibility stage, which we are very excited for.”
About Crescita Capital LLC
Crescita Capital is an investment and consultancy group that provides financing and corporate development services for growth-stage companies in markets around the world (www.crescitacapital.com).
About Temas Resources Corp.
Temas Resources Corp. is a mineral exploration company focused on the acquisition, exploration and development of Iron, Titanium and Vanadium properties in Canada. The Company has an option to acquire a 100% interest in the DAB Property which consists of 128 contiguous mineral claims which cover 6,814 hectares (68.14 km2) within the Grenville Geological Province located in Quebec, Canada.