Convertible Loan Notes Secure $1.335m for Great Divide’s Gold Production Push
Great Divide Mining has successfully raised $1.335 million through convertible loan notes, signaling strong investor confidence as it advances the Challenger Gold Mine joint venture.
- Capital raising of $1.335 million via unsecured convertible loan notes
- Directors to participate with $105,000, pending shareholder approval
- Loan notes convertible into shares and attaching options at a discount or floor price
- Funds earmarked for milestone payments, working capital, and offer costs
- PAC Partners acted as lead manager and bookrunner
Strong Investor Backing for Capital Raise
Great Divide Mining Ltd (ASX – GDM) has announced a successful capital raising effort, securing $1.335 million through the issuance of unsecured and unquoted convertible loan notes. The offer attracted both existing sophisticated investors and new professional participants, reflecting growing market confidence in the company’s transition from exploration to production.
Directors have committed to participate in the raise with $105,000, subject to shareholder approval at the upcoming Annual General Meeting (AGM). This insider participation often signals management’s belief in the company’s prospects and aligns interests with shareholders.
Convertible Loan Notes and Shareholder Approval
The loan notes carry a face value of $1 each and can be converted into ordinary shares and unlisted attaching options on a one-for-one basis. Conversion is contingent on shareholder approval under ASX Listing Rules, expected to be sought at the AGM. The conversion price will be set at the greater of a $0.25 floor price or a 20% discount to the 15-day volume weighted average price (VWAP) prior to conversion.
If conversion does not occur, the loan notes will be repaid in cash with a 15% annual coupon. The attaching options have a $0.50 exercise price and a two-year expiry, offering investors additional upside potential if the company’s share price appreciates.
Funding the Challenger Gold Mine Advancement
The funds raised will primarily support milestone payments related to the Challenger Gold Mine joint venture in New South Wales, alongside working capital and costs associated with the loan note offer. This project marks a pivotal step for Great Divide Mining as it moves from an explorer to a gold producer, a transition that could unlock significant value if operational targets are met.
CEO Justin Haines highlighted the strong investor response and welcomed new shareholders, emphasizing the company’s focus on rapid project advancement through assets with existing infrastructure. The involvement of PAC Partners as lead manager and bookrunner adds further credibility to the raise.
Looking Ahead
Settlement of the loan notes is anticipated on 8 September 2025, with shareholder approval for director participation and conversion terms to be sought at the AGM. The outcome of these approvals will shape Great Divide Mining’s capital structure and influence its ability to capitalize on the Challenger Gold Mine opportunity.
Bottom Line?
The success of this raise sets the stage for Great Divide Mining’s next growth phase, but shareholder approval will be the key to unlocking full conversion benefits.
Questions in the middle?
- Will shareholders approve director participation and loan note conversion at the AGM?
- How will the potential dilution from conversion impact existing shareholders?
- What are the key milestones and timelines for the Challenger Gold Mine advancement?
