Deal sells 11% secured notes and five-year warrants for 530,000 shares
By Devika Patel
Knoxville, Tenn., May 8 - Chile Mining Technologies Inc. said it settled a $2.12 tranche of a $3.5 million private placement of 11% secured convertible notes. The deal is being conducted by Halter Financial Securities, Inc. and Euro Pacific Capital Inc.
The note matures in five years and is initially convertible into common stock at $2.00 per share. The conversion price is a 9.09% discount to the May 7 closing share price of $2.20.
The investors also received five-year warrants for 530,000 shares, which are each exercisable at $2.00, also a 9.09% discount to the May 7 closing share price.
Settlement of the final tranche is expected June 15.
Proceeds will be used for new facility expansion, general corporate purposes and working capital.
Chile Mining is a copper extraction company based in Santiago, Chile.
| Issuer: | Chile Mining Technologies Inc.
|
| Issue: | Secured convertible note
|
| Amount: | $3.5 million
|
| Maturity: | Five years
|
| Coupon: | 11%
|
| Conversion price: | $2.00
|
| Warrants: | For 530,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Agents: | Halter Financial Securities, Inc. and Euro Pacific Capital Inc.
|
| Settlement date: | May 8 (for $2.12 million), June 15
|
| Stock symbol: | Pink Sheets: LVEN
|
| Stock price: | $2.20 at close May 7
|
| Market capitalization: | $22.14 million
|
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