Metals One (AIM:MET1), the AIM and OTCQB-listed critical and precious metals developer focused on gold and uranium, has secured £4 million in gross funding from YA II PN, a fund managed by Yorkville Advisors Global.
The facility is structured as a senior promissory note rather than a convertible instrument, meaning the loan principal cannot itself convert into equity.
Including the new funding, Metals One now holds more than £11 million in cash and liquid portfolio investments, against an estimated £6 million in listed investments it expects to divest to help fund repayments.
The note carries a 5% original issue discount and 7% annual interest, rising to 18% on default, leaving net proceeds of £3.74 million after fees.
Repayments begin 60 days after closing, in equal monthly instalments of 10% of the original principal, continuing until the note is repaid in full.
Metals One will also issue Yorkville 221.36 million warrants, equal to the note's value, exercisable for three years at a strike price 130% above the prior day's closing share price.
"This structure enables the Company to leverage marketable value in its non-core portfolio to provide non-dilutive capital to advance its core opportunities wherein we believe material near-term value uplift potential resides," said Daniel Maling, Managing Director.
The net proceeds will fund the company's gold projects in Africa and the Americas.
Spark Advisory Partners has also been appointed as Metals One's AIM nominated adviser with immediate effect, succeeding Beaumont Cornish.
News Intelligence what this means for the company
Metals One raised £4 million via a senior promissory note from Yorkville Advisors, netting £3.74 million after fees and a 5% discount, to fund gold projects in Africa and the Americas without immediate equity dilution. The loan carries 7% annual interest (18% on default) and requires repayment in monthly instalments starting 60 days after closing, but Yorkville receives 221.36 million warrants exercisable at 130% above the prior day's share price—a deferred equity kicker that preserves near-term capital structure while creating future dilution risk.
The facility extends Metals One's runway to £11 million in reported cash and liquid investments, reducing immediate equity issuance pressure, but the 18% default rate and warrant overhang (221 million shares at a strike 30% above market) create refinancing risk if gold projects do not advance or if the share price falls. Repayment depends partly on divesting an estimated £6 million in listed investments, introducing execution and market-timing dependencies.
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