Thomson Resources Ltd (ASX: TMZ) (OTCQB: TMZRF) has entered into a monthly share purchase agreement with Lind Global Fund II, LP (“Lind”) for an initial term of 1 year.
Under the Agreement, the Company can draw down monthly tranches aggregating no more than A$3,500,000 over the 12 months term, which term can be extended for a further 12 months at Thomson’s election.
The funds received by the Company will be used for working capital purposes.
The Agreement contains typical lender protections such as negative covenants and representations and warranties.
The Company will also issue 15,000,000 fully paid ordinary shares in the Company to Lind, and, subject to obtaining shareholder approval, Thomson will issue to Lind the number of options equaling one-for-five of the Shares issued for the relevant Monthly Tranche.
The Company will obtain a refreshment of its capacity and an approval of the Agreement at its next shareholders’ meeting.
Following the announcement, shares of Thomson Resources (ASX:TMZ) were unchanged at $0.019.