Baobab Resources secured a three year equity line facility (ELF) of USD 7.9 million in order to speed up the current drilling program at their Tete iron,vanadium and titanium project. The ELF allows the company ongoing access to funding from the Dutchess Opportunity Cayman Fund at any time during the next three years via share subscriptions. Priced at a discount of 6% to the market price, the subscriptions will take place at Baobab’s discretion. The ELF specifies that Baobab will determine a minimum acceptable price for each tranche, ensuring that shares are not sold for less than their value and allowing the company to protect the stock price. With a mineral resource of 47.7 million tons, the company’s main asset is their iron, vanadium and titanium project in Mozambique. Having completed 3000m of reverse circulation (RC) drilling at the South Zone of Tete, they are currently working on bringing in a second rig to accelerate the process.
