YA Global Master SPV, which is advised by Yorkville Advisors, has entered into a GBP4m standby equity distribution agreement with AIM listed Mercator Gold, a mineral development company.
Mercator Gold entered into the agreement as a means of raising additional capital as and when required for working capital.
Pioneered nine years ago by Yorkville, a SEDA offers companies a low risk way of optimising their capital structure in pursuit of their growth strategy.
The terms enable Mercator Gold at its discretion to drawdown up to GBP4m in tranches, pursuant to the terms of the SEDA, in exchange for the purchase of newly issued shares.
The shares will be priced at a discount to the prevailing market price at each drawdown, for up to 30 months from the signing of the agreement.
“We are pleased to have entered into the SEDA with YA Global and anticipate that it will now form a key component of our financing strategy. The SEDA provides us with improved financial flexibility that will assist us in developing our asset base and potentially enable us to act more quickly to take advantage of new opportunities,” says Patrick Harford, managing director, Mercator Gold.
"Having monitored Mercator Gold’s successful restructuring and demonstration of its value creation capabilities through the Copper Flat transaction, Yorkville is pleased to provide its investment into Mercator Gold and to become a long term financial partner. We look forward to seeing the development and realisation of Mercator Gold’s other value creation projects," adds Brian Kinane, vice president, Yorkville Advisors UK.
