17/07/2015 - 10:15

Minderoo invests in Impact

17/07/2015 - 10:15

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Andrew Forrest’s private vehicle, Minderoo Group, has announced plans to invest up to $7.3 million in local miner Impact Minerals.

Minderoo invests in Impact
Impact's Broken Hill project in NSW.

Andrew Forrest’s private vehicle, Minderoo Group, has announced plans to invest up to $7.3 million in local miner Impact Minerals.

Under the terms of the deal, Minderoo will subscribe for $1 million Impact shares in a 2.1 cents-a-share placement, representing a 15 per cent discount to the company’s 15-day volume weighted average price, and comes with attaching options to acquire extra shares worth $860,000.

Minderoo will also commit to an initial $2 million investment in exchange for interest-free three-year secured convertible notes, which will only be convertible into ordinary shares at no more than 2.1 cents or 80 per cent of the 30-day volume weighted average price, and 34 million attaching options for a potential further investment of up to $1.46 million.

It will also have the option to invest a further $1 million into Impact’s Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in New South Wales, to earn a 19.9 per cent stake after Impact has spent a combined $2.5 million on the two projects, at which point a joint venture agreement will be formalised.

Following the investment, Minderoo chief investment officer Aaron Hood will be appointed to Impact’s board, while former Fortescue Metals Group head of resources strategy and current corporate development director of Squadron Resources (Minderoo’s private mining investment vehicle), John Clout, will be engaged as a technical adviser to Impact.

Impact managing director Mike Jones said securing Minderoo as a new cornerstone investor was a milestone for the company and its shareholders.

“In this current downturn in the resources industry, well-funded private investment groups such as (Minderoo) 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,” he said.

Shares in Impact were 34.6 per cent higher to 3.5 cents each at 10am.

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