Australian energy company WHL Energy Limited (WHL Energy or the Company) announced Wednesday it has received new funding support providing for a commitment of $4 million from New York-headquartered investment firm Magna Equities II, LLC (Magna).
WHL Energy will have immediate access to $125,000 of those funds which will enable the Company to maintain its momentum in increasing the prospectivity of its Seychelles and VIC/P67 La Bella projects.
WHL Energy Managing Director, David Rowbottam, said: “This is a sensible step for the Company and its shareholders and will allow us to continue the ongoing work with the Company’s existing assets and to advance work on new opportunities currently being reviewed.”
“To have the backing of a respected U.S. fund such as Magna at a time when the junior-end of the resources market is struggling to raise fresh equity is a tremendous vote of approval for both WHL Energy and its existing assets.”
Under the Magna Facility, WHL Energy will receive an initial $125,000 in funding on the date of closing and an additional $125,000 within 30 days of closing.
Subsequent funding in tranches of up to $250,000 is available every 60 calendar days (to a maximum of $3.75 million) at the Company’s election, subject to customary conditions including no events of default or termination events having occurred.
The Magna Facility has a 24 month term from the date of each drawdown, is unsecured, bears no interest costs, can be repaid at any time by the Company with a 15 percent premium and can be converted into WHL Energy shares at any time by Magna during the term at a 20 percent discount to the 5-day volume weighted average price (VWAP) of WHL Energy’s ordinary shares.
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