For early-stage mining and industrial ventures in Argentina, the secured convertible note has become the go-to bridge instrument. It combines equity upside via conversion with downside protection via collateral, and it's fast to execute under common Argentine and international legal frameworks. In-Basin Sand's €150,000 bridge is structured this way.
A standard convertible note is unsecured debt: if the venture fails, the holder queues behind operational creditors. A secured convertible adds a collateral layer — typically a personal guarantee from a majority shareholder, a pledge over specific assets, or a priority claim. This shifts the holder from pure venture-risk to asset-backed credit risk during the note's term.
| Term | Typical range | In-Basin Sand |
|---|---|---|
| Interest rate | 8–12% p.a. | 10% p.a. |
| Maturity | 12–24 months | 18 months |
| Conversion discount | 15–25% | 20% |
| Valuation cap | Pre-money ceiling | US$8M pre-money |
| Collateral | Personal guarantee / asset pledge | Majority shareholder personal guarantee |
At a qualifying equity round (Series A), the principal and accrued interest convert into shares. The share price is the lower of: a 20% discount to the round price, or the US$8M pre-money cap divided by share count. This ensures the note holder receives a premium to the next-round investor for taking earlier risk.
If no qualifying round occurs before maturity, the note is redeemed in cash with accrued interest. If the issuer cannot redeem, the collateral (personal guarantee) backs repayment. Bridge investors are secured creditors, not pure convertible holders during the term.
18 months · 10% p.a. · 20% conversion discount · US$8M pre-money cap · Majority shareholder personal guarantee (S. Kalierof). Minimum ticket US$15,000 / Maximum ticket US$50,000. Issuer: In-Basin Sand S.A.S. (en constitución).
In-Basin Sand is running a €150,000 secured convertible bridge closing 29 April 2026. Public landing: https://inbasinsand.com