Ann: Silver Potential to be Drilled at Kalgoorlie, page-7

re: Ann: Silver Potential to be Drilled at Ka... Neighbours MRP doing nicely...who knows?


Private Placement of $6.6 million and silver
offtake to fund additional development of Nimbus
Highlights
? Conditional $6.6million Placement and silver offtake agreement with RK
Mine Finance completed at a premium to today’s closing price; and
? Funds to be used for expanded aggressive drilling program and the
purchase of the new silver and gold processing plant, beginning the
transition from explorer to producer.
MacPhersons Resources Limited (ASX:MRP) is pleased to announce it has
entered into a $6.6 million Placement Agreement and a Contract for Sale and
Purchase of Silver with international financier RK Mine Finance.
The funding and offtake agreements are considered by the MacPhersons Board to
be a major step forward for the Company. The funds will be used to continue to
extend the drill out of the 12.5Moz silver equivalent resource at its 100% owned
Nimbus Silver Project and to take the recommissioning and expansion of the
Nimbus Silver Mill to the next stage by purchasing the new 480,000tpa silver and
gold Merrill Crowe plant.
MacPhersons Chairman Mr Ashok Parekh and Managing Director Morrie Goodz
commented:
“The addition of RK Mine Finance to our register represents a significant gain for
MacPhersons in attracting a leading international metals merchant as an
institutional shareholder with the Company.
“RK Mine Finance brings a wealth of experience in marketing precious and base
metal products and has a long term commitment to MacPhersons’ future
production.
“The advantage of this offtake is that it is not hedged. It delivers MacPhersons the
full upside to all increases in the spot price of silver.”Placement and Offtake Agreements 20 August 2012
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Placement
The terms of the $6.6m Placement with RK Mine Finance include:
? RK Mine Finance will subscribe for 15,789,474 fully paid ordinary shares at a price of $0.418 per share for a
total of $6.6m;
? The Company and RK Mine Finance are to enter into the Offtake Agreement; and
? The Company to have received firm commitments to raise a further $6m at a price of not less than $0.38 per
share.
The Placement Agreement contains other terms and conditions usual for agreements of that nature.
Casimir Capital was Lead Manager to the $6.6m Placement with RK Mine Finance.
The Company has appointed E.L & C. Baillieu Stockbroking Ltd (Lead Manager) to raise an additional amount up to
but not exceeding MacPhersons capacity under the ASX Listing Rules. The Company expects to be in a position to
make an announcement regarding this capital raising shortly.
Offtake Agreement
The Company has entered into the Offtake Agreement with RK Mine Finance. The offtake has been structured such
that silver product produced at Nimbus is to be purchased by RK Mine Finance at a price consistent with the London
Silver Market Fixing Price quotations. The Offtake Agreement contains other terms and conditions standard for an
agreement of this nature. The offtake is for a fixed 12 million ounces of silver and does not specify a timeframe for
delivery.
About Red Kite
RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or
expansion of mine production and is part of the Red Kite group. Red Kite operates across the global metals industry
from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney. Investors in Red Kite funds
include college endowments, foundations, family offices, pensions and other institutional investors.
Contact Details:
USA Australia
Oskar Lewnowski Peter Rozenauers
+1 212 596 3481 [email protected]
+61 418 418 171