Theta Gold Mines (ASX:TGM) entered a non-binding funding agreement with Nebari Partners for a proposed senior secured loan facility of US$80 million to support the development of its TGME Gold Mine Project in South Africa’s Eastern Transvaal Goldfields.
The facility, structured in two tranches, will provide US$45 million at closing, with an additional US$35 million available at the company’s discretion after three months, subject to operational milestones and conditions precedent.
The loan carries a 3-month SOFR-based interest rate with a 3.75% floor plus 10% per annum, a 12-month interest capitalisation, and an 18-month principal repayment moratorium.
The facility term is five years from the first tranche funding.
The agreement includes first-ranking security over substantially all Theta Gold and subsidiary assets, guarantees from all subsidiaries, and warrants for ordinary shares representing 27% of the funded amount, exercisable at a 40% premium to the 20-day VWAP and expiring 48 months post-tranche funding.
Roderik Van Losenoord, Senior Managing Director at Nebari, said, "We are pleased to execute this non-binding term sheet, which will support the construction and ramp-up of South Africa's next major gold mine."
Proceeds from the proposed facility will fund construction, commissioning, and working capital for the TGME Gold Mine Project.
The parties will now complete due diligence, regulatory approvals, and finalise binding legal documentation, with the final facility subject to customary conditions precedent.
At the time of reporting, Theta Gold Mines' share price was $0.20.