Impact welcomes new $7.3M cornerstone investor

THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has reached an agreement for funding of up to $7.3 million from Squadron Resources, the private mining investment vehicle of the Minderoo Group.

The transaction is subject to formal documentation and shareholder approval of some aspects of the investment.

Once all that has been achieved, Squadron’s investment will occur in two tranches:

Tranche 1 will involve the issue of $2 million in secured convertible notes and 45 million unlisted call options on the completion of formal documentation, which Impact expects will happen within two weeks; and

Tranche 2 will result in the issue of approximately 47.6 million ordinary shares to raise $1 million and around 26.4 million attaching unlisted call options, subject to shareholder approval.

Impact indicated it would be seeking shareholder approval of the placement, and the issue of ordinary shares on the conversion of the notes, warrants and options at the company’s annual general meeting, which is expected to be held in late September.

Once all the dust has settled Aaron Hood, chief investment officer of the Minderoo Group and corporate development director of Squadron, will be appointed to the Board of Impact.

In addition Dr John Clout, Squadron’s chief geologist, will be employed as a technical advisor to Impact.

“Securing Squadron as a new cornerstone investor is a milestone development for Impact and its shareholders,” Impact Minerals managing director Dr Mike Jones said in the company’s announcement to the Australian Securities Exchange.

“In this current downturn in the resources industry, well-funded private investment groups such as Squadron are faced with an almost unlimited number of opportunities to review and so this investment in Impact is a clear statement of the potential of our projects to deliver major discoveries.

“Impact’s immediate focus is to progress exploration on all of our projects, in particular at Broken Hill where Impact recently announced some of the highest grades of platinum group metals in Australia as well as at the high-grade gold-silver-zinc-lead Commonwealth project.”

The agreement also allows the option for Squadron, at its sole discretion, to invest a further $1 million into either or both of the Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in NSW, to earn a 19.9 per cent interest after Impact has spent a combined total of $2.5 million on the two projects.

Email: info@impactminerals.com.au

Website: www.impactminerals.com.au