$6,000,000 convertable note into stock. Belows deal is great for SHD. Deal didn't outline issue price but if at share price once deal was announced they should come up with about 10% of shares on issue.
Things are looking great
FUNDING OF FUTURE OPERATIONS Over the last couple of months, Sherwin Iron has been negotiating the following agreements with Territory Resources Limited (TTY) a wholly owned subsidiary of Hong Kong based commodities trader, Noble Group Limited: a) A $6m convertible note, having a term of 18 months. b) An agreement to use Sherwin’s facilities at the Darwin Port (as announced 23 January 2013) and to permit Sherwin to export a 200,000 MT bulk sample to China steel mills to enable production runs of Sherwin Iron ore. The bulk sample is planned to commence circa April 2013 subject to final approval of the mine management plan. The relationship with TTY, which is an existing iron ore exporter in the Northern Territory, will enable Sherwin Iron to advance more quickly to production which is tentatively aimed at November 2013. TTY currently have infrastructure such as rolling stock and existing facilities at Darwin Port. The proposed agreement with TTY will permit Sherwin to utilise TTY’s infrastructure and technical capabilities, allowing Sherwin Iron to commence production as early as possible and therefore unlock shareholder value. The board has not undertaken an equity raising in anticipation of the TTY negotiations being completed. In the event that the TTY negotiations are not finalised in the next two weeks, the board intends to undertake a small pro rata rights issue or capital raising to permit Sherwin to continue to meet its business objectives.
SHD Price at posting:
10.5¢ Sentiment: LT Buy Disclosure: Held
