In spite of the credit crunch, Vancouver's Avanti Mining Inc. (CNQ:AVT) has secured a US$20 million bridge loan from the Resource Capital Fund, a private equity company with offices in Denver and Perth, Australia.
Proceeds of the loan will be used to complete a feasibility study at the Kitsault molybdenum mine, which Avanti recently bought from Aluminerie Lauralco Inc.
The loan bears an interest rate of 15% per annum. If it's not repaid by July 15, 2009, it automatically becomes a convertible debenture with a maturity date of June 15, 2012.
Avanti has issued three million shares to Resource Capital as a facility fee. An additional three million shares will be issued if the loan is not repaid in 180 days.
Avanti's share price during the past week: between $0.10 and $0.15; 52-week high: $0.80; 52-week low: $0.10.