IGE Resources AB, formerly known as International Gold Exploration AB, announced is has secured a NOK 150 million ($22.5 million) standby equity facility.

An IGE press release said the facility will be utilized if and when needed to secure further financing of IGE’s diamond projects in Southern Africa and its nickel project in Sweden.

IGE secured the financing from YA Global Master SPV Ltd, an investment fund managed by US based Yorkville Advisors. The Standby Equity Distribution Agreement (SEDA), is an equity financing mechanism that has previously been implemented by a number of companies listed on the London AIM market and was introduced to companies listed on the Oslo Stock Exchange earlier this year.

According to IGE's statement, the terms of the SEDA give it the right – but no obligation – to draw down funds in tranches, in exchange for issuing new shares to Yorkville over the next 30 months.

Should IGE decide to utilize this facility, the new shares will be issued at a price equal to a 5% discount, however, IGE has the right to set a minimum acceptable share price for each draw down.

The maximum size of each tranche is limited to NOK 40 million ($6 million).

IGE is currently preparing an increase in its rough diamond production in Southern Africa, with three diamond mines expected to be operational within the next ten months.

The Company is also in the midst of Pre-Feasibility preparations for its Ronnbacken nickel project in Sweden.

“We are pleased to have concluded on this facility as we are facing a period of significant investments. In order to move forward with our diamond projects, we need to invest in machinery and plant equipment," said IGE’s CEO Tomas Fellbom.

"The flexible financing capacity now established clearly underpins IGE’s development strategy... We regard this facility as a novel and interesting capital instrument for a company like IGE and well adapted to our financing strategy,” he added.

The NOK 150 million limit of the facility can be increased later, providing both parties find such an increase desirable. The SEDA will also enable Yorkville to execute Share Lending Agreements with individual IGE shareholders.