Mozambique Mining: Mustang Resources amends Arena financing for Montepuez graphite project

Ruby miner Mustang Resources has amended the terms of a A$19.95-million investment facility from US investor Arena Investors.

The amendments would see Mustang split the second tranche of the funding into two parts, reducing the amount of the second tranche from the original A$3.8-million to A$1.99-million, and deferring the balance of the original second tranche drawdown until either June or July.

The reduction in the original second tranche funds would result in less potential equity dilution for existing shareholders, but would not adversely affect the funding of Mustang’s planned project activities in June and July.

Mustang MD Bernard Olivier noted that Arena’s overall financial commitment had not changed.

“The continued strong support from Arena, a major global institutional investor managing in excess of $750-million, is testimony to the quality of Mustang’s Montepuez ruby and Caula vanadium/graphite projects,” Olivier said.source:miningweekly.com