Dragon Mountain Gold Limited has finalised an agreement for a $20 million standby equity facility with the US-based investment fund YA Global Investments LP. formerly known as Cornell Capital Partners, LP.
Under the terms of the facility DMG may, at its sole discretion, issue fully paid shares to YA Global over the next 60 months up to a total of $20 million.
Importantly, the facility is not debt and does not restrict DMG from using alternative funding sources in the future.
Any shares issued under the facility will be priced relative to the prevailing share price at the time of issue. They will rank pari passu in all respects with the Company's existing ordinary shares and application will be made for official
quotation of the shares by ASX.
The YA Global group is managed by the US-based Yorkville Advisors LLC, and enjoys a solid and growing reputation in US, UK and Australian markets for structuring equity participation agreements. To date, YA Global has provided in excess of $300 million to over 30 ASX-listed companies.
The equity facility provides DMG with a flexible standby arrangement to access equity at its discretion.
