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Sprott backs Copperstone project funding

Emerging US-focused gold miner Kerr Mines (TSX:KER) has signed a term sheet with Sprott Private Resource Lending for a phased funding package of US$25 million for its Copperstone project in Arizona.
Sprott backs Copperstone project funding Sprott backs Copperstone project funding Sprott backs Copperstone project funding Sprott backs Copperstone project funding Sprott backs Copperstone project funding

Kerr Mines has secured funding to progress development of the Copperstone project, Arizona

Staff Reporter

The package comprises a $2 million in senior redeemable convertible note carrying a 9% coupon and which is repayable in 18 months; a $2 million senior gold loan repayable 18 months after closing; and a $21 million senior project loan facility repayable 48 months after closing.

Kerr also plans to raise $2 million in equity working capital.

The funding is structured in two phases, with the first tranche of $4 million to close by November 23 and a second tranche of $21 million to close by June 2019.

The Toronto-quoted stock traded unchanged Tuesday at C14c, at the low end of its 12-month range of 13-35c. The company has a market value of $35.81 million.

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