Equitas Resources Signs Long Term Funding Term Sheet with Cartesian Royalty Holdings Pte. Ltd. for a US$6.0M

Equitas Resources (TSXV:EQT; FSE:T6UN) announced that it has entered into a binding term sheet with Cartesian Royalty Holdings Pte. Ltd., an affiliate of Cartesian Capital Group, consisting of a US$5 million revolving gold prepayment loan facility and a US$1 million equity private placement investment.
As quoted in the press release:

Key Finance Package Points:

• This funding is intended to cover the projected development and acquisition expenditure of Equitas for up to 5 years.
• CRH will have board representation for as long as they have material involvement with Equitas. Equitas hopes to benefit from the breadth of their strategic and financial experience.

The equity portion raised is likely to be channelled towards exploration, grade control drilling, and other costs to prove up further gold resources at our flagship Cajueiro Project, and other prospects.
The debt financing aspect of the Gold Prepay provides protection against shareholder dilution. CRH has committed to be a long-term partner while we develop the Cajueiro Project.
The Finance Package is intended to help Equitas become cash-flow generative and to move towards its 5-year strategic goal of becoming a mid-sized gold producer.

Equitas President and CEO, Chris Harris, stated:

We are very pleased to have agreed to this innovative financing with Peter Yu and the CRH team. Upon closing, the funding provided should secure the near- and medium-term growth plans of Equitas, and help us towards our goal to become a profitable, cash-flow generating, self sustaining mid-tier gold producer in Brazil, with a potentially significant development portfolio. We look forward to working together with Cartesian on building the value of Equitas for its shareholders.