Emerita Resources Announces Increase to Loan Financing with Nebari Resources to Advance IBW Project

Core Points - Emerita Resources Corp. has entered into an amended credit agreement with Nebari Natural Resources Credit Fund II, LP, providing a fourth tranche of USD$35 million as a standby loan, increasing the total borrowing capacity to USD$50 million [2][3] - The Upsized Loan will support the advancement of the wholly-owned Iberian Belt West Project, with drawdowns at the company's discretion [4] - The proceeds from the Upsized Loan will be allocated for working capital, exploration, geological drilling, engineering studies, environmental permitting, and general administrative costs [5] Loan Agreement Details - The loan agreement consists of four tranches: Tranche 1 of USD$6 million, Tranche 2 of USD$4.5 million, Tranche 3 of USD$4.5 million, and Tranche 4 of USD$35 million [3] - Emerita has only drawn down on Tranche 1 as of the current date, with no other changes made to the original loan agreement aside from the addition of Tranche 4 [3] - If Tranche 4 is drawn down, the company will issue common share purchase warrants valued at USD$13.125 million, with a 25% premium to the lower of the 20-day volume weighted average price or the market price [6] Financial Position and Future Plans - The CEO of Emerita stated that the upsized facility provides increased financial flexibility to advance the IBW Project and other growth opportunities with less dilution [5] - Nebari's Managing Director highlighted the significant growth of the IBW mineral resource since the first tranche of the original loan, positioning the project well for execution [5] - The company is in a strong financial position and does not intend to utilize the expanded facility in the near term [5] Regulatory and Compliance Information - The issuance of warrants and loan bonus warrants is subject to approval by the TSX Venture Exchange [7] - The warrants will have a statutory hold period of four months and one day under applicable securities laws [8]