Mustang Resources Ltd.: Secures $19.95m Funding From Institutional Investor

Sydney - Mustang Resources Ltd. (ASX:MUS) (FRA:GGY) (OTCMKTS:GGPLF) is pleased to announce that it has secured a A$19.95 million funding facility under a convertible note facility (Convertible Note Deed) with a leading US institutional investor.

Funding in conjunction with a one for five non-renounceable entitlement issue to existing shareholders to fund the further development of the Montepuez Ruby and Caula Graphite Projects

Key Points

- Arena Investors LP, a major US institutional investor with more than US$750 million in assets under management on behalf of its clients and affiliates, commits to invest net A$19.95 million in Mustang under a multi-tranche convertible note facility

- Funds to be drawn down in seven tranches with the first tranche of A$1.9 million (subject to conversion restrictions) to be received on signing the convertible note deed

- Follow on tranche of A$3.8 million (subject to shareholder approval) available to the Company in May 2018

- Balance of A$14.25 million will be available in five further draw-downs of A$2.85 million over two years, subject to shareholder approval

- Opportunity for existing shareholders to participate through a one for five non-renounceable entitlement issue at 2.6 cents per share to raise up to A$4 million

- Funding arrangement ensures that Mustang is financed for further planned exploration and development work on its Montepuez Ruby and Caula Graphite Projects in Mozambique

The Convertible Note Deed, with convertible notes having a face value of A$21 million, has been signed with Arena Investors LP (Arena), a US-based institutional investor with more than US$750 million in assets under management on behalf of its clients and affiliates.

Under the terms of the Convertible Note Deed, Arena has agreed to invest up to a net A$19.95 million (face value A$21 million) through an unsecured convertible note facility, to be drawn-down in seven separate tranches as follows:

- A$1.9 million (face value A$2 million) to be received upon signing of the Convertible Note Deed (with notes subject to conversion restrictions) with the convertible note to be issued (together with any shares issuable upon conversion) under the Company's existing placement capacity;

- A$3.8 million (face value A$4 million) (subject to shareholder approval) for the follow on tranche which may be drawn by the Company 4 months after the first tranche issue date; and

- A$2.85 million (face value A$3 million) (subject to shareholder approval) for each of the remaining five tranches, with 3 to 4 months minimum between draw downs thereof. Each tranche has an 18-month term. The Company today also announces that it will also be offering shareholders a one-for-five (1:5) non - renounceable rights issue to eligible Shareholders on the designated record date (to be confirmed) to raise up to approximately A$4 million (before costs) at an offer price of 2.6 cents per share (Entitlement Issue).

To view the release, please visit:
http://abnnewswire.net/lnk/0MI51H40

About Mustang Resources Ltd:

Listed on the Australian Securities Exchange, Mustang Resources Ltd. (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.

The Montepuez Ruby Project consists of three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields Plc in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.

The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.

Visit the Mustang website at http://www.mustangresources.com.au for more information.



Contact:

Mustang Resources Ltd.
Managing Director: Christiaan Jordaan
E: info@mustangresources.com.au
T: +61-2-9239-3119

Media & Investor Relations:
Paul Armstrong
E: paul@readcorporate.com.au
T: +61-8-9388-1474