Canadian company Mill City Gold Mining has agreed to advance Alberta Aerospace (AAC) the C$5 million ($3.5 million) required to complete certification of the Phoenix FanJet single-turbofan trainer. Calgary-based AAC is working to certificate the two-seat FanJet, which is based on the Promavia Jet Squalus military trainer, by mid-1998.
Mill City's advance will be secured by AAC's assets, including the FanJet prototype acquired from bankrupt Promavia. The company will have the right to convert the debt into shares in AAC, which is projecting sales of more than 100 aircraft a year.
By December 1997, AAC had already raised more than C$8 million towards certification of the FanJet, including an initial C$120,000 from Mill City.
Source: Flight International