Vango Mining (ASX:VAN) is continuing negotiations regarding a $5 million convertible note facility with Singaporean investment entity Alpha Crown Pte Ltd.
Proceeds will be used to expedite the path towards development of K2, part of the Plutonic Dome Gold Project in Western Australia.
K2 has a resource of 415,000 tonnes at 7.7g/t for 103,000 ounces of gold. It has a pre-tax NPV of A$14.87 million, IRR of 229% and average C1 cash cost of A$791 per ounce.
The facility has a 12.5% interest rate compounded annually and is repayable 24 months from the date of issuance.
At maturity, the facility holder may elect to receive the facility amount in cash or equities at a conversion price of $0.16 per share.
