If a proposed US$20.75 million capital injection from Orion Mine Finance goes ahead, Aquila Resources (TSX: AQA) will be able to get its Back Forty project – a zinc and gold rich volcanogenic massive sulfide deposit in Michigan – shovel ready by the end of 2016, says chief executive Barry Hildred.
The proposed financing – of which US$17.25 million will consist of a silver stream and US$3.5 million will be in the form of a private placement – also meets the company’s priority of not diluting shareholders at current valuations, Hildred emphasizes.
“We needed significant money to move the project into Phase II and doing it all through equity would have been tremendously dilutive,” he says, noting that Aquila’s market cap is just $20 million.
So when Hildred and his management team set out in September and October of last year to market the project and raise money, they focused on private equity firms …
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