Native Mineral Resources Secures A$3.5 Million Convertible Note to Boost Growth

Convertible Note Raises Immediate Capital

Native Mineral Resources Holdings Limited (ASX:NMR) has completed a A$3.5 million convertible note raising with Lind Global Fund III LP, marking its third such funding agreement with the investor. The convertible note carries a face value of A$4.2 million and matures in 24 months, offering the company a repayment holiday of 120 days. This arrangement provides NMR with immediate working capital flexibility as it advances its operational and strategic objectives.

The facility’s monthly repayments are set at A$210,000 and can be settled in cash, shares, or a combination of both. Shares issued for repayments will be priced at a 10% discount to the average of the five lowest daily VWAPs over the preceding 20 trading days, while cash repayments carry a 4% premium. The fixed conversion price for the note is A$0.066 per share, which, if fully converted, could result in the issuance of approximately 63.6 million new shares, subject to shareholder approval and ASX Listing Rules compliance.

Security and Follow-On Investment Potential

The convertible note is secured by existing arrangements with Lind, collateral shares held by BOC Holdings Pty Ltd, a guarantee from Yogi Bear Holdings Pty Ltd, and a first-ranking mortgage over property at 15–19 Clarence Street, Port Macquarie. This robust security package underscores the investor’s confidence in NMR’s assets and growth prospects.

Moreover, NMR may seek shareholder approval to access a further A$4 million under similar terms within the next 12 months. This potential follow-on investment would be subject to market capitalisation milestones and investor consent, providing additional capital if required to support ongoing exploration and production activities.

Shareholder Approval and Regulatory Compliance

Currently, NMR has no available placement capacity under ASX Listing Rules 7.1 or 7.1A to issue shares for conversion or repayment. The company plans to seek shareholder approval for the conversion and any follow-on investment within 90 days of completion. It also intends to apply for a waiver to extend the usual three-month timeframe for issuing shares post-approval.

Until these approvals are secured, NMR must satisfy repayment obligations in cash, which adds a layer of financial risk if approvals are delayed. Failure to meet cash repayments could trigger an event of default, allowing the investor to demand immediate repayment or convert the note into shares.

Capital Raising in the Context of Operational Momentum

This capital injection arrives as NMR continues to ramp up production at its Blackjack Gold Project, with recent operational updates showing steady gold pours and advancing mining fronts. The funding will support debt management and working capital requirements, positioning the company to capitalise on its growth strategy amid positive operational momentum.

Managing Director Blake Cannavo highlighted the facility’s role in providing growth capital while preserving flexibility. Lind Partners Founder Jeffrey L. Easton echoed this optimism, emphasizing the investor’s commitment to supporting NMR’s efforts to maximise the Blackjack Mill’s capacity and shareholder value.