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 US$2.4M note, placed across three milestone-gated tranches, 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 principal 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.
The US$2.4M raise is split into three milestone-gated tranches, each with its own valuation cap, conversion discount and coupon. Earlier tranches carry the lower cap and the higher discount and coupon, pricing in the earlier risk.
| Tranche | Size | Valuation cap | Discount | Coupon |
|---|---|---|---|---|
| A | US$500K | US$15M | 30% | 10% p.a. |
| B | US$800K | US$15M | 20% | 10% p.a. |
| C | US$1.1M | US$15M | 10% | 10% p.a. |
Maturity 18 to 24 months. Minimum ticket US$25,000. Sergio Kalierof provides a personal guarantee on Tranches A and B.
At a qualifying equity round (Series A), principal and accrued interest convert into shares. The share price is the lower of the tranche discount to the round price, or the tranche valuation 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.
US$2.4M total across three milestone-gated tranches (A US$500K / US$15M cap / 30% / 10%; B US$800K / US$15M / 20% / 10%; C US$1.1M / US$15M / 10% / 10%). Maturity 18 to 24 months. Personal guarantee from Sergio Kalierof on Tranches A and B. Minimum ticket US$25,000. Anchor allocations welcome. Issuer: JOLOT S.A.S. (Argentine company, active since 2019, BORA 11266/19, CUIT 30-71635875-1). Round facilitated by Sentinel Legal. Banking via Banco Santander Argentina.
In-Basin Sand is raising a US$2.4M secured convertible note across three milestone-gated tranches (A US$500K, B US$800K, C US$1.1M). Minimum ticket US$25,000. Public landing: https://inbasinsand.com