Western Australia explorer Aurox Resources has successfully secured a $10 million debt facility with a US-based investment fund, the company announced in a statement on Friday.
Under the terms of the deal, Aurox will issue shares to YA Global Master in exchange for cash at any time over the next 60 months.
According to Aurox managing director Charles Schaus, while the company’s cash position is strong and there is no immediate requirement for short term funding, it is an advantage to have a source of funding available at short notice as a contingency measure.
“It significantly reduces the company’s medium term funding risk whilst increasing flexibility,” he said.
“The equity placement facility would allow the company to strategically raise capital on favourable terms at a time of its choosing.”
Aurox said it is focused on developing its Balla Balla iron ore project in the Pilbara, which has a resource of 438 million tonnes.