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TORONTO, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Talisker Resources Ltd. ("Talisker" or the "Company") (TSX:TSK, OTCQX:TSKFF) is pleased to announce that it has secured a financing package of approximately $21.5 million (the "Financing Package"). The Financing Package has three components: (i) US$11,750,000 from the second closing (the "Sprott Second Draw") of the previously announced royalty agreement with Sprott Private Resource Streaming and Royalty (B) Corp. ("Sprott"); (ii) a $4,000,000 convertible debenture (the "Convertible Debenture") from the Phoenix Gold Fund ("Phoenix"); and (iii) a non-brokered private placement (the "Gold-Linked Note Financing") of up to $1,500,000 of gold-linked notes (the "Notes"). Proceeds from the Financing Package will be used to continue advancement of the Company's flagship Bralorne Gold Project in British Columbia and for general corporate purposes. Additional details on the Financing Package are included below.
Terry Harbort, CEO of Talisker stated, "The closure of this financing package places Talisker in a solid financial position as we transition into mining at the Bralorne Gold Project. This transition is a culmination of over five years of dedication and hard work from the Talisker team including 165,000m of drilling, discovery of over 50 additional veins and development of what we believe is a robust mine plan. With gold prices sustaining strong support levels at all-time highs, we are excited to become Western Canada's next gold producer."
Financing Package
Convertible Debenture
The Convertible Debenture is an unsecured obligation of the Company in the principal amount of $4 million. It bears interest at a rate of 12% per annum, calculated and payable quarterly in arrears, and has a term of three years.
Phoenix may convert the principal amount to common shares of Talisker (the "Shares") at a conversion price of $0.50, being 120% of the market price of the Shares on the Toronto Stock Exchange (the "TSX") on the trading day prior to the date of the Convertible Debenture (the "Conversion Price").
Talisker has the option to convert all or any portion of the Convertible Debenture into Shares if the closing price of the Shares on the TSX is at least 130% of the Conversion Price for each of the 20 trading days before a notice of conversion is delivered to Phoenix. If Shares are issued to Phoenix pursuant to the Company's conversion right and Phoenix wishes to sell any Shares, Talisker also has the right to identify a purchaser for such Shares.
In connection with issuing the Convertible Debenture, the Company will issue 500,000 Shares representing a finder's fee of $200,000, which is equal to 5% of the principal amount of the Convertible Debenture.
Gold-Linked Note Financing
The Company has received subscriptions to issue Notes in the aggregate principal amount of $1,307,000.
The Notes will represent senior unsecured obligations of the Company and will not be convertible into Shares.
The Notes will bear interest at a rate of 15% per annum and will mature on December 31, 2027.
The principal amount of the Notes will be used to calculate the quantity of gold (the "Gold ...
