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Sydney-based Tribeca will provide an initial $8 million via convertible notes, priced at 20c per note and convertible into DGR shares at 20c per share within two year.
The notes bear an interest coupon of 12% per annum, payable as cash in the first year, and at DGR’s election in the second year, either as cash or in shares.
Tribeca is also entitled to subscribe for a further $2 million of notes in any future issue by DGR.
Tribeca Natural Resources fund manager Ben Cleary will join the DGR board.
“We see the demand for resource commodities escalating globally over the next five to 10 years,” Cleary said.
“DGR Global and its board and management have a proven track record in the generation and delivery of world-class resource assets, and we intend to help develop that further.
“As one of the largest shareholders in SolGold, DGR provides tremendous leverage to one of the world’s great copper gold discoveries at Cascabel in northern Ecuador, a project that excites us.”
SolGold’s London shares are up by 484% over the past 12 months, while DGR shares are up by 228%.
DGR has a market capitalisation of around $65 million, but holds around $175 million worth of listed investments in resources companies.
“DGR Global is pleased to have Tribeca on its register, and sees this as further endorsement of the DGR resource company creation strategy we’ve been running for some time now,” DGR CEO Nick Mather said.
“The spectacular growth already achieved in AIM and TSX-listed SolGold and AIM-listed Iron Ridge Resources is the tip of the iceberg for DGR, and we have every confidence in the trajectory for Armour Energy, Dark Horse Resources, Aus Tin Mining, and Lakes Oil.”
Another recent success for DGR was the takeover of Orbis Gold in late 2015, which netted it $26 million in proceeds
“We are focused on resource commodities that the world needs as it urbanises and electrifies, and that’s copper – lots of it, lithium, gas and gold,” Mather said.
“Copper is the new iron ore, gas is the most efficient cleanest and transportable fossil fuel you can get, and lithium demand for battery storage is forecast to skyrocket.”
DGR shares rose by 8.7% in early trade to 12.5c.
