Britannia Mining, Inc. announced today, that the Company is meeting the required milestones set by European structured finance and private equity firm, REM Capital (“REM”), in order to close a financing facility of $30 Million.
On the heels of presenting Britannia with a draft timetable (announced on June 5th), management has provided REM with the requested business plan and financial projections. These clearly illustrate how the company intends to use capital to advance its existing projects and make acquisitions to increase revenue potential. REM’s structured finance proposal utilizes a Special Purpose Vehicle (“SPV”) that will provide the framework for Britannia’s capital financing.
CEO of Britannia Mining Kenneth Roberts commented, “Meeting this milestone is pertinent to our funding timetable, as it initiates preparations for REM to issue a formal term sheet for a non-dilutive financing facility. This is an extremely exciting position for the Company as the issuance of term sheet moves the financing closer to completion.”
The Chief Executive Officer of REM Capital, Gavin Scott, stated, “A robust business plan that demonstrates positive cash flow, along with an element of cash collateral and adequate security are the core components that underpin the SPV facility. Having met with Britannia and their various JV partners on several occasions, we are confident these components will continue to be delivered. The proposed facility will be used to draw down working capital that Britannia will use to advance the Company’s core interests in gold and iron ore, as well as to capitalize on the significant opportunity secured through iron ore stockpiles in Malaysia. We are confident the structured finance will help to unlock the value that is clearly inherent in the Company.”
Mr. Roberts concluded, “We are very fortunate to be in a favorable position where both our anticipated cash flows and capital infusions are expected to be bountiful. This year holds great promise for us and Britannia should close out 2014 in a very positive revenue and cash position.”
- 22 Jul, 2014
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