Metro Mining Limited announced that it has entered into a binding senior secured term loan facility agreement for gross proceeds of AUD 45,000,000 on March 13, 2023. The transaction will include participation from new investors Nebari Natural Resources Credit Fund I LP, Nebari Natural Resources Credit Fund II, Lp, funds managed by Nebari Holdings, LLC. The funds are payable in two tranches over the next six months four AUD 30,00,000 and AUD 15,000,000 respectively.

The maturity date is four years from initial draw. The company will pay interest rate of SOFR subject to a minimum of 3%, plus a margin of 9%, payable monthly. The company has the option to capitalize the first 6 months of interest payments.

The company will pay upfront fee of 1.0% payable on closing, plus an original issue discount on each drawdown of 4.0% which is capitalized to principal and amortized over the repayment period. Principal repayment holiday for two years, followed by 25 equal monthly repayments each of 4.0% of principal, accrued interest, and the capitalized original issue discount. The company will also issue warrants on each drawdown 421,000,000 warrants at the time of first tranche and several warrants equal to the Australian dollar divided by a share price equal to a 30% premium to the then ten-day VWAP on the second tranche.

The warrants will have a strike price equal to a 30% premium to the ten-day VWAP prior to issuance and expire after 36 months. The transaction is expected to drawdown by 30 November 2023, subject to meeting certain conditions.