Tranche 2 face value reduced to $2.1 million from $4 million
Agrees Amended Terms with Arena Investors
This will see the Company split Tranche 2 into two parts, thereby reducing the amount of the end-May 2018 (Tranche 2) drawdown of convertible notes from A$3.8 million (face value of A$4 million) to A$1.995 million (face value of A$2.1 million) and deferring the balance of the original Tranche 2 dawdown until later in June or July 2018. Details of the amendments are listed in Appendix A (see link below). The overall financial commitment by Arena Investors LP to the Company has not changed.
Mustang Managing Director Dr. Bernard Olivier said: "The continued strong support from Arena, a major global institutional investor managing in excess of US$750 million, is testimony to the quality of Mustang's Montepuez Ruby and Caula Vanadium-Graphite projects. The reduction in the original Tranche 2 quantum to be drawn end of May 2018 will result in less potential equity dilution for existing shareholders, but does not adversely affect the funding of the Company's planned project activities in June and July 2018."
About Arena Investors
Arena is a global investment firm and merchant capital provider that seeks to generate attractive risk-adjusted and uncorrelated returns by investing in a highly diversified portfolio across the entire credit spectrum. Based in New York City, Arena employs a team of 42 professionals and was formed in partnership with The Westaim Corporation, a publicly traded Canadian holding company focused on the financial services industry. See www.arenaco.com.
To view Appendix A, please visit:
About Mustang Resources Ltd
Listed on the Australian Securities Exchange, Mustang Resources Limited (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.
The Montepuez Ruby Project consists of three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields PLC in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.
The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.
Visit the Mustang website at http://www.mustangresources.com.au for more information.
Mustang Resources Ltd