Impact Minerals Bags Up To A$7.3M From Andrew Forrest's Minderoo Group

Jul. 19, 2015 9:28 PM ET
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Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

Impact Minerals (ASX:IPT) shares are expected to open stronger after the company secured funding of up to $7.3 million from Squadron Resources Pty Ltd, the private mining investment vehicle of the Minderoo Group.

One of the plums of Impact is the recent discovery of the Australia's highest ever platinum grades at the company's Red Hill prospect.

Red Hill, part of the Broken Hill Project, includes a 30 metre thick zone at 6 grams per tonne platinum equivalent as well as 5 to 10 metre thick zones at 15g/t platinum equivalent.

A deal of this size in the current challenging capital markets highlights the potential of these assets, while also shows the deal making ability of its managing director Dr Mike Jones.

Andrew Forrest privately-owns Squadron Resources, and has previously outlined how Squadron will be used to make investments in the mining sector.

Forrest remains the chairman of Fortescue Metals Group (ASX:FMG), of which he owns around one-third.

Jones commented: "Securing Squadron as a new cornerstone investor is a milestone development for Impact and its shareholders.

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

The key terms of the transaction comprise:

- An initial $2 million investment in exchange for: interest-free 3 year secured convertible notes, convertible only into ordinary shares at the lower of 2.1 cents per share or 80% of the 30 day VWAP); and 45 million attaching unlisted call options to acquire ordinary shares at 3.25 cents per share (a potential further investment of up to about $1.46 million);

- Subject to shareholder approval, a $1 million placement of ordinary shares at 2.1 cents per share (a 15% discount to the 15 day VWAP) with 26,428,572 attaching 3 year unlisted call options to acquire ordinary shares at 3.25 cents per share (a potential further investment of up to about $0.86 million);

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

- The appointment of Squadron's nominee, Mr Aaron Hood, to the Board of Impact as a nonexecutive director; and

- The engagement of Dr John Clout as a technical consultant to Impact.


A deal of this size in the current very difficult capital markets highlights the potential of Impact's assets, while also shows the deal making ability of its managing director Mike Jones.

Proactive Investors recently initiated coverage of Impact Minerals with a $0.04 price target.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

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