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Klondex Mines Ltd. (TSX:KDX) reported that financing is expected to include a gold financing package from Franco-Nevada Corporation in the amount of $35 million, a private placement of subscription receipts for gross proceeds of approximately $35 million and a private placement of secured notes for approximately $25 million.
As quoted in the press release:
The Company has agreed on financing terms with Franco-Nevada in the form of a US$35 million financing package consisting of a pre-paid gold purchase arrangement and a 2.5% NSR royalty on all minerals produced from the Company’s properties (the “Gold Financing”). The 2.5% NSR royalty commences on year six, upon completion of the pre-paid purchase arrangement. The obligations under the Gold Financing and the Notes (as defined below) will be secured against the assets of the Company and the obligations under the Gold Financing and the Notes will rank pari passu.
Click here to read the Klondex Mines Ltd. (TSX:KDX) press release
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