Convertible Loan Provides Lifeline Amid Funding Challenges for Arcadia Minerals

Interim Funding Secured Amid Challenging Market Conditions

Arcadia Minerals Limited (ASX: AM7), a diversified metals exploration company focused on Namibia, has successfully secured interim funding of A$150,000 through a convertible unsecured non-recourse loan facility. This capital injection is designed to sustain the company’s working capital needs while it continues negotiations with third parties to fund further development of its flagship Swanson Mining Project and explore potential farm-out or joint venture arrangements for its Karibib Gold and Copper Project and TVC Tantalum, Lithium, Nickel, and PGE Projects.

Loan Terms and Strategic Implications

The convertible loan carries an interest rate of 10% per annum, payable either in cash or shares depending on the method of repayment. Importantly, the loan and accrued interest may be converted into shares at the company’s discretion, subject to shareholder approval, at a 15% discount to the most recent capital raising price. If not converted, the loan must be repaid within five months or earlier upon certain default events.

This funding mechanism provides Arcadia with a flexible bridge to maintain operations and advance its project pipeline without immediate dilution, while also preserving the option to convert debt into equity should market conditions and shareholder sentiment align.

Focus on Project Development and Value Creation

Arcadia’s portfolio includes several promising exploration assets, with the Swanson Mining Project positioned as a near-term tantalum production opportunity. The company’s strategy hinges on leveraging cash flows from Swanson to accelerate exploration and development of other high-potential projects such as the Bitterwasser Lithium deposits, Kum-Kum nickel-copper-PGE prospects, and the Karibib gold-copper project.

Non-executive Chairman Jurie Wessels highlighted the importance of this interim funding in navigating difficult market conditions and advancing collaboration discussions. The company aims to capitalize on expressed interest from multiple parties to secure further funding and strategic partnerships that could transform its asset base.

Outlook and Market Positioning

While the A$150,000 loan is modest, it represents a critical lifeline for Arcadia to maintain momentum across its diversified metals portfolio. The convertible nature of the loan offers a pathway to strengthen the balance sheet without immediate cash outflows, contingent on shareholder approval and market receptivity.

Investors will be watching closely for updates on the progress of funding negotiations and any formal farm-out or joint venture agreements that could unlock value and de-risk the company’s exploration ambitions. The next few months will be pivotal in determining whether Arcadia can translate its project potential into tangible operational and financial milestones.