Just started researching EMR. The Gold Price Participation Agreement could be a windfall for SPROTT at current USD1900/oz gold price. If the gold price averages USD1900/oz over the term of the loan, it would equate to USD49.8m to Sprott, on top of the 9% pa interest.
1Credit Agreement with Sprott Private Resource Lending II (“Sprott”) for US$60 million. The financial close of the Sprott facility occurred on 27 April 2020 (refer to ASX announcement dated 28 April 2020). Terms – 5 years Interest - 6.5% pa plus the greater of (i) USD 3 month LIBOR, and (ii) 2.50% pa, payable monthly with 75% of the interest capitalised during construction Gold Price Participation Agreement – Commencing on or about first forecast gold production, a gold price participation payment on 1,449oz per month to a total of 62,307oz. Payment is calculated based on the differential between the average LBMA Gold Price for the month subject to a minimum gold price of US$1,127/oz, and a gold reference price of US$1,100/oz
EMR Price at posting:
60.0¢ Sentiment: None Disclosure: Not Held
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