Australian mining company Tyranna Resources Limited has secured over $31 million in funding from Sinomine Resource Group and Sinomine International Exploration (Hong Kong) to explore and develop the Namibe Lithium Project in Angola.
The funds will be disbursed in two phases, with the first phase involving a $4.5 million share placement in Tyranna and $10 million for 10 per cent of the fully diluted shares in AM (Mauritius) Limited, Tyranna’s subsidiary located in Mauritius which owns 100 per cent of the Angolan subsidiary operating in Angola.
The remaining $4.5 million includes a share placement in Tyranna at $0.025 per share for 180 million shares, an 18.8% premium to the 15-day VWAP. The funds raised under the Phase 1 investment will be used to advance development of the Namibe Lithium Project, provide additional working capital, and for general business development.
Sinomine also has an option for Phase 2 to subscribe $10 million for a further 10 per cent of the fully diluted shares in AM Mauritius and $6.75 million for up to 180 million shares in Tyranna at an issue price of a 25% discount to the 5 Day VWAP prior, or $0.0375 per share (whichever is higher).
Conditions and Benefits
The Subscription Agreements are conditional on several factors such as a binding Offtake Agreement for 50 per cent of the spodumene and pollucite from the Namibe Lithium Project within 30 days from execution of the subscription agreements and registration of the transfer of the Namibe Licence from VIG World Angola Lda to Tyranna’s subsidiary, Angolitio Exploração Mineira, among others.
The investment will help fast-track the Namibe Lithium Project’s development, which is expected to create local jobs and spending with local suppliers, placing Angola firmly on the map as a friendly and progressive mining jurisdiction.
Tyranna’s Chairman, Joe Graziano, praised the agreement, saying it would help to define the scale and size of the Project for the future development of potentially significant resources.
Sinomine’s President and CEO, Mr Pingwei Wang, also expressed enthusiasm, adding that both teams would work closely to ensure an efficient and effective exploration strategy moving forward to “create value for the local Angolan community as well as the shareholders of both companies.”
Source: Free Daily Stock Market News