For personal use only

For personal use only
ASX RELEASE
2 February 2015
ASX: VAN
Vango Mining Limited
ABN 68 108 737 711
Directors
Bruce McInnes - Chairman
Frank Zhu - Managing Director
Sean Zhou - Non-Exec Director
Company Secretary
Simon Penney
Vango signs binding heads of agreement for
$5m convertible note facility
Highlights:
 Binding heads of agreement signed for $5m
convertible note facility
 Funding to expedite the path towards development
of K2 & provide working capital
Overview:
Vango Mining Limited (“Vango” or the “Company”) is pleased
to announce that it has signed a binding heads of agreement
with Alpha Crowne PTE LTD (“Alpha”) for a $5 million
convertible note facility (“Facility”). The Facility is to provide
the funding required to expedite the path towards
development of K2, part of the Plutonic Dome Gold Project
(Farm-In/Joint Venture with Dampier Gold Limited (ASX:
DAU)).
Commenting on the signing of the Facility, Mr Frank Zhu,
Managing Director, said “The facility is a great outcome for
Vango at a time when funding for exploration activities is
difficult. The terms negotiated represent a strong endorsement
of the viability of the Plutonic Dome Project and the strategy
established by Vango.
The facility further de-risks the project by providing greater
certainty that Vango has sufficient funding to meet the FarmIn/Joint Venture commitments and progress towards the
development of the K2 deposit.”
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Key Terms:
Key terms and conditions of the Facility are stipulated below:
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Facility amount of $5 million accessible from the 1st March 2015 with an initial draw down
of $1 million. Subsequent monthly drawdowns of $1 million per calendar month will be
provided until reaching the maximum draw down capacity;
Funds are to be utilised to progress towards development of K2 and provision of working
capital during the period prior to reaching positive cash flow;
A 12.5% interest rate compounded annually (365-day basis) is payable on funds drawn
down;
Interest will be payable on or before the 30th June of each year;
Facility is repayable 24 months from the date of issuance.
At maturity, the facility holder may elect to receive the facility amount in cash or equities
at a conversion price of $0.16 per share;
4,166,666 options at an exercise price of $0.06 and 3,125,000 options at an exercise price
of $0.16 will be issued to the facility holder upon drawing down of $5,000,000 from the
facility. The expiry date will be two years from issuing of the options ;
A 5% facilitation fee is payable upon each tranche of the draw down of the facility;
The issuance of options and the potential conversion into equity of the facility will be
subject to shareholder approval should the Company not have sufficient capacity under
Listing Rule 7.1.
About Alpha Crowne PTE LTD:
Alpha Crowne PTE LTD is a Singaporean incorporated investment entity focussed on providing
finance to advanced gold assets within the Asia Pacific region
For further information, please contact:
Frank Zhu, Managing Director, Ord River Resources: frank.zhu@vangomining.com.au, +61
420 318 004
Forward Looking Statements:
This announcement may contain certain forward looking statements. These forward-looking
statements are not historical facts, they are based on Vango Mining Limited’s current
expectations, estimates and projections about the industry in which Vango Mining Limited
operates, and beliefs and assumptions towards Vango Mining Limited’s future performance.
Words including but not limtied to “anticipates”, “expects”, “intends”, “plans”, “believes”,
“seeks”, “estimates”, “potential” and similar expressions are intended to identify forwardPage 2|3
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ASX RELEASE
looking statements. These statements are not guarantees of future performance and are
subject to risks, uncertainties and factors, some of which are beyond the control of Vango
Mining Limited. These risks, uncertainties and factors can cause actual results to materiallly
differ from those expressed or forecasted in the forward-looking statements.
Vango Mining Limited cautions both potential and existing shareholders not to place reliance
upon these forward-looking statements, which reflect the views of Vango Mining Limited at
the time of this release. The forward-looking statements made in this release relate only to
events as of the date which the statements are made. Vango Mining Limited is under no
obligation to release any revisions or updates to these forward-looking statements to reflect
events, circumstances or unanticpiated events occuring after the date of this release except
as required by law or by any other relevant regulatory authority.
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