EMR - chart thread, page-37

Sprott has received investment committee approval to provide the US$60 million project development facility for the purpose of developing the Okvau Gold Project.Key terms of the Okvau Facility are as follows: Facility amount – US$60 million, with availability in installments subject to release conditions customary for a facility of this nature; Term – 5 years from the closing date; Interest – 6.50% per annum plus the greater of (i) US Dollar 3 month LIBOR, and (ii) 2.50% per annum, payable monthly,with 75% of the interest capitalized during construction; Hedging – No mandatory hedging required; Gold Price Participation Agreement – Commencing on or about first forecast gold production, a gold price participationpayment on 1,449 ounces per month to a total of 62,307 ounces. 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 per ounce, and a gold reference price of US$1,100 per ounce; Structuring/Arrangement Fee – Commensurate with fees usually associated with facilities of this nature (circa 1.6%); Early repayment – no voluntary prepayment before the 3rd anniversary of the closing date, thereafter Emerald mayvoluntary prepay the whole Okvau Facility outstanding; Security–Sprotttohavefirstrankingsecurityoverallundertakings,propertiesandassetsofEmeraldincludingtheOkvauGold Project, to be released upon full repayment of all obligations; and Amortization – the Okvau Facility will be fully amortized from the 21st month following closing through to maturity.The Okvau Facility remains subject to satisfaction of customary conditions, including: Completion of legal due diligence to the satisfaction of Sprott; Execution of all material construction, supply and operating contracts; Receipt of all permits, leases and licenses required for the Okvau Gold Project;  Receipt of all necessary shareholder and regulatory approvals; Finalisation of the Mineral Investment Agreement; and Completion of formal documentation and perfection of security.Acquisition and Development FacilityIn addition to the Okvau Facility, Emerald has granted Sprott the exclusive right to fund future acquisition or development project opportunities by way of a US$100 million Acquisition and Development Facility.Access to the Acquisition and Development Facility is subject to, among other things, full due diligence by Sprott, its internal approval process having regard to the nature of the project opportunity, as well as negotiation and settlement of definitive documentation and implementation of security, which will include other customary and specific conditions precedent required by Sprott. The fees associated with arrangement of the Acquisition and Development Facility are expected to be commensurate with facilities of this nature (circa 1.0%). Further details will be provided once project specific terms have been agreed.