Tamerlane Ventures Inc. (CVE:TAM) reports that Renvest Mercantile Bancorp Inc. has agreed to subscribe for 3,846,154 common shares of equity at C$0.26 per share for a total equity investment of C$1.0 million.

Tamerlane Ventures Inc. (TSXV:TAM) reports that Renvest Mercantile Bancorp Inc. has agreed to subscribe for 3,846,154 common shares of equity at C$0.26 per share for a total equity investment of C$1.0 million.

The press release is quoted as saying:

Renvest has agreed to subscribe for an additional C$1.0 million and be the lead order in a future equity placement the Company will undertake as part of the larger scale financing the Company is planning to complete later this fall. This tranche of equity is expected to be priced in the context of the market at the time and is expected to be issued at the same price and terms as subscriptions by other investors.
Tamerlane has entered into a binding agreement with a court ordered interim receiver for the purchase of a new, never-used, complete C$900,000 flotation equipment package at a considerable discount to current market prices. This flotation equipment will form a key piece of the processing and production facility at the Tamerlane R-190 Deposit at the Pine Point property. In advancing the project, the Company anticipates that the purchase of this processing equipment will close within 30 days and funds from the second tranche of the Renvest debt facility will be used for the purchase.

Tamerlane’s President and CEO, Michael Willett says:

“We are extremely pleased that Renvest has chosen to participate in this project, not only as our lender, but now as an equity investor. This arrangement has allowed us to continue to advance the Pine Point Project with an opportunistic purchase of the flotation equipment.This deal paves the way to implement the construction of the project leading to production on schedule, while we continuously look at ways to minimize the capital cost of the project. Tamerlane continues to advance all facets of the project financing, including the existing USD$60 million debt financing, the equipment leasing package, equity funding and off-take / metal streaming agreements. We are in advanced stage discussions with multiple financing providers on various term sheets. Renvest has a good understanding of the project and it’s their continued support that will benefit all shareholders.”

Click here to access the entire news release.