WIN Metals Secures AUD 860,000 Convertible Note Funding at 10% Interest
WIN Metals has secured AUD 860,000 through a convertible note issue with a 12-month term and 10% interest to support working capital and restart activities at its Radio Gold Mine.
- Convertible notes raise AUD 860,000 at 10% interest
- Notes convert into shares at 90% of 10-day VWAP
- Directors commit AUD 40,000 subject to approval
- Proceeds to fund Radio Gold Mine restart preparations
- Notes are unsecured and convertible after six months
Convertible Note Raise Targets Working Capital and Mine Restart
WIN Metals Ltd (ASX:WIN) has locked in binding commitments for AUD 860,000 through the issuance of unsecured, unquoted convertible notes. These notes carry a 12-month maturity and an annual interest rate of 10%, payable by capitalisation. The capital raised aims to bolster working capital, cover corporate and transaction expenses, and advance preparations for restarting operations at the Radio Gold Mine.
Conversion Terms and Redemption Rights Define Capital Structure Impact
Noteholders can convert their notes into fully paid ordinary shares from six months post-issue at a conversion price set at 90% of the 10-day volume weighted average price (VWAP), bounded between AUD 0.016 and AUD 0.023 per share. Any notes remaining at maturity will convert automatically. The company retains the right to redeem notes from six months after issue at 105% of face value plus accrued interest, subject to noteholders' conversion rights. This convertible note structure introduces potential dilution but offers investors a discounted entry point aligned with market pricing.
Director Participation and Shareholder Approval
Company directors have committed AUD 40,000 to the note issue, forming part of the AUD 860,000 total. However, their participation is contingent on shareholder approval under ASX Listing Rule 10.11, to be sought at the upcoming Annual General Meeting. The notes issued to other investors fall within the company's existing placement capacity, allowing WIN Metals to expedite funding without immediate shareholder approval.
Funding Strategy Reflects Commercial Considerations
WIN Metals evaluated alternative financing options, including traditional equity raises and other equity-linked debt instruments, before settling on this convertible note arrangement. The company concluded that the convertible notes offered more commercially favourable terms, balancing cost and flexibility. Legal advice confirmed that the notes are market standard and do not contain features that would trigger ASX concerns, such as variable conversion prices or collateral shares.
Operational Focus on Radio Gold Mine Restart
The proceeds from the note issue, alongside approximately AUD 400,000 expected from selling surplus equipment at the Radio Gold Mine, will underpin the restart preparations for the mine. This funding step follows a series of developments including resource upgrades and metallurgical test results that support the project's viability. The capital injection is a tactical move to maintain momentum as WIN Metals advances towards operational recommencement.
Bottom Line?
The convertible note raise provides essential near-term funding while introducing potential dilution, making upcoming shareholder approval and operational progress key to watch.
Questions in the middle?
- Will shareholder approval for director participation be secured without delay?
- How will the share price track relative to the note conversion price over the next 12 months?
- What are the next operational milestones for the Radio Gold Mine restart following this funding?
