Emerald Resources Secures $280m Funding From Sprott, Macquarie
Key Highlights
- Emerald Resources has received a $281 million US$200 million acquisition facility from Sprott and Macquarie Bank respectively.
- The committed facility is expandable to a total of up to US$400 million.
- It has a maturity of five years, with funds to be drawn over 36 months.
- Emerald states that the facility supports its strategy to achieve 600,000 to 800,000 ounces of gold production per quarter.
- Managing director Morgan Hart said the company was still interested in further growth opportunities.
Gold miner Emerald Resources has landed a US$200 million ($281 million) acquisition facility to help pay for future project buys, with the backing of Sprott and Macquarie Bank.
The facility has a US$400 million capacity which allows Emerald to use more of its limited cash for future acquisitions. The company said the plant is consistent with its plan to expand annual production between 600,000 and 800,000 ounces of gold.
Five-Year Facility For Funding Future Projects
Emerald, meanwhile, has entered into a five-year facility agreement with Sprott and Macquarie Bank. They can be drawn down over 36 months, enabling the financing to be available and utilised by the company during that period for future project purchases.
Emerald is working towards bringing the Dingo Range and Memot gold projects into production. Meanwhile, the company has also stated that it seeks greater growth opportunities.
What It Means doe Australian Entrepreneurs and Businesses
Emerald’s new property acquisition portal illustrates how Aussie entrepreneurs and companies in the resources industry can access continued funding to fund future project acquisitions and repeat acquisitions.
The transaction also points to the role of financiers like Sprott and Macquarie in providing the acquisition money for businesses acquiring project portfolios. When contemplating an expansion, structured acquisition finance data represents possible capacity for funding future opportunities while also meeting the needs of longer-term growth plans.
Source: Capital Brief
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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