Elevra Lithium (ASX:ELV) will issue an upfront tranche of CA$65 million of convertible notes to a unit of Canada Growth Fund under a previously agreed strategic financing package, according to a Monday Australian bourse filing.
The tranche will have a maturity of five years from the issue date and will accrue interest at the Canadian Overnight Repo Rate Average (CORRA), floored at zero, plus 225 basis points per annum, payable semi-annually in arrears.
Proceeds from the issuance will be used to fund the staged expansion of North American Lithium, and to provide additional liquidity to ensure capital management adequacy.
The issuance of a CA$80 million second tranche of convertible notes remains subject to the satisfaction of certain conditions, including shareholder approval.