Terrain Minerals Limited (ASX:TMX)
Perth, June 22, 2009 AEST (ABN Newswire) - Terrain Minerals Limited (ASX:TMX) is pleased to announce that it has signed a A$5 million funding facility with Fortrend Securities Pty Ltd.
The facility will provide funds over the next three years, to further develop proposed mining operations and test established exploration targets.
Fortrend has agreed to provide up to A$5 million to TMX to be drawn down at TMX's discretion by the issue of shares to Fortrend. TMX has the right but not the obligation to use the facility at any time over the facility's 3 year term. TMX can determine the timing and amount of any drawdown within the provisions of the facility agreement. The facility does not preclude any other equity or debt arrangements that TMX may decide to use to fund its projects.
In the event of a draw down, shares will be issued at a 10% discount to the volume weighted average price calculated over the 15 days prior to the draw down notice. In addition Fortrend will receive 1 option for every 4 shares issued. The strike price of the option will be the issue price of the shares issued to Fortrend.
TMX Managing Director, Keith Wells said that "TMX is delighted that after a detailed review of the company and its prospects, Fortrend has agreed to make available the A$5m facility".
Fortend CEO, Joe Forster said that "Terrain has some very exciting gold and nickel prospects. We are delighted to be able to help Terrain fund the development of these projects"
Further information regarding Terrain's projects and exploration programs can be found on the Company's website,
http://www.terrainminerals.com.au
Contact
Keith Wells
Managing Director
Terrain Minerals Ltd
Tel: +61-8-9481-2455
terrain@terrainminerals.com.au
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