RCKS Talk: Northern Vertex Signs Equipment Financing Facility for US $9 Million

Precious Metals
Company News

Northern Vertex Mining Corp (TSXV:NEE) on RCKS Talk.

Northern Vertex Mining Corp (TSXV:NEE) has executed a commitment letter and term sheet with Caterpillar Financial Services Corporation to secure an equipment financing facility between 70-80% of the cost of the equipment for a maximum of US$9 million. Under the terms and conditions, the company also has the option to purchase the equipment at the end of the four-year lease period. Northern Vertex has actively raised capital to fund the initial capital costs of US$33.0 million required to develop the Moss gold-silver project. To date, the company has completed a C$7.35 million convertible debenture financing, received C$5 million in proceeds from a warrant incentive program and signed a credit agreement with Sprott Lending for US$20 million. Including the equipment financing, the company appears to be positioned to achieve its goal to produce gold by Q4 2017. Northern Vertex trades at C$110/oz a premium to peers (C$54/oz). We view the premium valuation as reasonable given that the Moss mine is financed and under construction. In addition, the company’s valuation does not appear to account for the potential of meaningful mine-life extension and improved economics from the ongoing optimization and exploration programs.
Derek Macpherson | VP Mining Analysis
Victoria Ellis Hayes | Associate

 

Red Cloud Klondike Strike Inc.
105 King Street East, 2nd Floor
Toronto ON, M5G 1G6
Priced as of prior trading day’s market close, EST (unless otherwise noted).
All values in USD unless otherwise noted
Disclaimer
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.’s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions (the “Red Cloud KS Business“). Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively, “Red Cloud KS“) may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers or clients by virtue of having viewed this report.
Company Specific Disclosure Details
Northern Vertex Mining Corp. – TSXV:NEE – 1,2,3,4
1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.

Click here to connect with Northern Vertex (TSXV:NEE) to receive an Investor Presentation.

The Conversation (0)
×