Emerita upsizes Nebari loan to $50M (U.S.) for IBW

Executive Summary

• Emerita Resources entered into an amended credit agreement with Nebari Natural Resources Credit Fund II LP, adding a fourth tranche of $35 million and increasing the total available loan facility to $50 million.
• The upsized loan provides additional flexible financing for the Iberian Belt West (IBW) project, covering working capital, engineering studies, permitting, equipment deposits, and general corporate costs.
• As consideration, Emerita will issue 1,219,512 common share purchase warrants at a $1.45 exercise price (expiring Aug 16 2028) and additional loan‑bonus warrants tied to the drawdown of tranche 4.

Key Details

• Loan Structure: Four tranches – Tranche 1: $6 M (already drawn), Tranche 2: $4.5 M, Tranche 3: $4.5 M, Tranche 4: $35 M (new).
• Total Facility Size: Up to $50 million U.S. after upsizing.
• Use of Proceeds: Working capital for exploration and drilling, engineering studies, environmental permitting, deposits on long‑lead equipment, and general & administrative expenses related to the IBW project.
• Warrant Issuance – Standard Warrants: 1,219,512 common share purchase warrants; exercise price $1.45 per share; expiry Aug 16 2028.
• Loan‑Bonus Warrants (Tranche 4): Number equal to $13,125,000 ÷ 25% premium to the lower of (i) 20‑day VWAP or (ii) market price on request date; each warrant purchases one common share at a 25% premium to that same lower price; expiry Aug 16 2028.
• Regulatory Conditions: Both the loan and warrants require TSX‑V approval and are subject to a statutory hold period of four months and one day under securities laws.
• Management Comments: CEO David Gower highlighted increased financial flexibility and reduced dilution risk, noting the company does not plan to draw on tranche 4 in the near term. Nebari Managing Director Steven Bowles emphasized support for IBW’s advancing mineral resource base.

Notable Quotes

“The upsized facility provides Emerita with increased financial flexibility to advance the IBW project and other growth opportunities for the company with less dilution.” – David Gower, CEO, Emerita Resources

“Nebari is pleased to provide additional financing capacity of now up to $50 million (U.S.) to the Emerita team in support of the development of the IBW project.” – Steven Bowles, Managing Director, Nebari