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EMC Metals Corp. (TSX:EMC) has secured a US$2.5M loan facility with Scandium Investments LLC, which is owned by a US private investor group. Proceeds from the loan are planned to be used to extinguish all outstanding financial obligations related to a February 2013 negotiated settlement arrangement which secured rights to the Nyngan Scandium Project.
As quoted in the press release:
In this regard, the Company repaid today US$1.2M in maturing indebtedness on existing debt, and will use the remaining loan proceeds to pay the final A$1.4M installment of the Nyngan settlement payment due June 30, 2014. Completion of these two payments secures 100% ownership of the Nyngan Scandium Project for EMC. This US$2.5M loan includes a convertible feature, exercisable by either the lender or EMC into an effective 20% joint venture (JV) interest in both the Company’s Nyngan and Honeybugle Scandium Projects, provided certain conditions are met by EMC.
EMC CEO, George Putnam, said:
We are very happy with the results of these recent financing efforts, and pleased to see a financial resolution to what has been a long and concerted effort to achieve direct ownership of the Nyngan Scandium Project. This transaction does a number of important things for EMC; it fully secures the Nyngan project, ultimately preserves 80% of the project for shareholders, and offers a clear path to a debt-free balance sheet with the JV conversion. This transaction creates a platform that insures new shareholder investments can now go towards building project value and generating progress news. It also brings us a partner that is aligned in helping us through development and ultimately to production, in what we intend to be the world’s first primary scandium mine.
Click here to read the EMC Metals Corp (TSX:EMC) press release
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