Yorkville Advisors, LLC (Yorkville), the US based investment manager to a family of funds, is pleased to announce that it has entered into a £5 million Standby Equity Distribution Agreement (SEDA) with AIM listed Frontier Mining Ltd (AIM: FML), a mineral exploration and development Company with the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. The deal was advised out of London.
Frontier Mining entered into the SEDA as a means of raising additional capital for general corporate purposes and working capital.
Pioneered 8 years ago by Yorkville, a SEDA offers companies a low risk, cost effective way of optimising their capital structure in pursuit of their growth strategy. The terms of the SEDA enable Frontier Mining, at its discretion, to drawdown funds in amounts based on a formula for each tranche for a total of up to £5 million in exchange for the issue of new equity. The price for each drawdown is based on a discount to the prevailing market price at the time of each drawdown, for up to 30 months from the signing of the SEDA, subject to certain limitations.
Erlan Sagadiev, CEO Frontier Mining Ltd said: ”Yorkville Advisors’ commitment to FML is another positive step for Frontier as it strengthens Frontier’s financing, further enabling us to continue significant progress at our Naimanjal and Benkala projects.”
Paul Strzelecki, Managing Director, Yorkville Advisors UK, said: “The SEDA will help ensure the company has some certainty in cash flow over the next two years, allowing it to take advantage of opportunities as they arise. Frontier Mining will have access to steady stream of cash as and when needed, without risking dilution of their shares or large costs.”
About Yorkville Advisors and Yorkville Advisors UK
Yorkville Advisors UK, LLP (Yorkville UK) is the London-based sub-advisor to the New Jersey, US-based Yorkville Advisors, LLC (Yorkville), which is the investment manager to a family of funds with approximately USD 900 million assets under management.
Founded in January 2001 by Mark Angelo, Yorkville specialises in providing flexible, innovative debt and equity investments and financing in publicly listed companies worldwide in a variety of sectors including energy, mining, technology media & telecommunication (TMT), healthcare and shipping. Yorkville has a broad investment mandate and the flexibility to invest across many geographies as well as sectors.
Yorkville tailors its financings according to each company’s need and offers a mix of debt structures, bridge financings, asset backed loans, equity facilities and, in some cases, equity injections.
Yorkville has offices in Jersey City, New Jersey; Jupiter, Florida; London and Hong Kong. It also participates in Italian, Greek and Israeli joint ventures.
About Frontier Mining Ltd
Frontier Mining Ltd. (frontiermining.com) is a mineral exploration and development Company that was incorporated in the state of Delaware, USA, on 5 August 1998 for the purpose of exploring and developing gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties.
Frontier currently owns two licenses in Kazakhstan. They are the Naimanjal exploration and mining licence, held by FML Kazakhstan, and, 50% of U.S. Megatech BVI which holds the Benkala licence. FML Kazakhstan is a wholly-owned subsidiary of Frontier Mining Ltd. Frontier has one producing gold mine, Naimanjal; one pre-feasibility stage gold project, Koskuduk; and the recently acquired 50% interest in the Benkala copper mine.
Frontier also has a potential copper porphyry deposit with associated gold and molybdenum, Baitimir; and several copper/gold prospects along a 25-km trend including both VMS and porphyry types. Metallurgical tests on its Beschoku and Yubileiny copper projects confirm the oxide copper ore is amenable to extraction using low cost SX-EW technology.
Frontier owns a 50% interest in KazCopper LLP, the joint venture Company that owns the Benkala copper-molybdenum-gold deposit located in north-western Kazakhstan within the Urals gold/copper ore belt. A Competent Persons Report (“CPR”) on the Benkala project completed by Wardell Armstrong International (“WAI”) in March 2007 estimates 47.75 Mt at an average grade of 0.36% Cu for the oxide mineralization, and 873.75 Mt at an average grade of 0.30% Cu for the sulphide mineralisation, representing some 2.8 million tonnes of contained copper. A conceptual study team and advisory team have both been appointed to fast track the development of this project forward towards a pre- feasibility study, with a view to beginning production at the end of 2010.
Issued and Fully Diluted Ordinary Shares
Frontier Mining’s shares are traded on the AIM market of the London Stock Exchange. Frontier currently has 218,120,095 issued and 21,812,009 reserved and outstanding options giving 239,932,104 fully diluted ordinary shares.