Alcyone lends, takes Black Mountain stake
Two weeks after borrowing $25 million from a global hedge fund, Perth-based Alcyone Resources is set to become lender through a $3 million deal with Perth-based silver hopeful Black Mountain Resources.
Alcyone, which at the end of the September quarter was sitting on $140,000, announced the deal this week to help fund the development of Black Mountain's two US-based silver projects.
The loan, at a 12 per cent interest rate, is higher than Alcyone's 9 per cent rate, payable annually, struck with US-based Platinum Partners earlier this month. Alcyone borrowed to help it build on its recent operational recovery at its Texas silver mine in south-east Queensland.
Along with the cash, Alcyone will receive 4.6 million shares in Black Mountain and 4.6 million options exercisable at 15�.
Black Mountain is focused mainly on its New Departure project in the US State of Montana. It said the funding would help it push the project toward first production in the March quarter.
Black Mountain said the loan would also help it with the development of its Conjecture silver projects in Idaho.
Black Mountain, with a market value of $6 million, was last trading at 7.4¢ and Alcyone, valued at $12.3 million, was trading at 0.2¢.
