Company also gets $5 million three-year credit line with Orion Mine
By Devika Patel
Knoxville, Tenn., Sept. 18 - GoGold Resources Inc. offered further details about a $35 million debt and equity financing and $5 million credit line with Orion Mine Finance Fund I. The deals priced July 12.
In the $5 million non-brokered equity sale, the 4,693,563 common shares will be priced at about C$1.103, which is a 9.21% premium to the C$1.01 closing price of the stock on July 11 and also a 5% premium to the volume-weighted average stock price for the 20 trading days ended Sept. 13.
The senior secured loan of $30 million bears interest at Libor plus 650 basis points with equal quarterly payments over a three-year period beginning on Sept. 30, 2014.
Orion will also receive 2 million warrants, which are each exercisable at C$1.50 for two years. The strike price is a 48.51% premium to the July 11 closing share price of C$1.01.
The $5 million credit line bears interest between 4.5% and 4.95% and is repayable over a three-year term.
Proceeds will be used for development and construction of GoGold's Parral tailings project in Chihuahua, Mexico, and general working capital purposes.
GoGold is a gold exploration company based in Halifax, N.S.
| Issuer: | GoGold Resources Inc.
|
| Issue: | Shares, senior secured loan
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| Amount: | $35 million
|
| Warrants: | 2 million
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.50
|
| Investor: | Orion Mine Finance Fund I
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| Pricing date: | July 12
|
| Stock symbol: | Toronto: GGD
|
| Stock price: | C$1.01 at close July 11
|
| Market capitalization: | C$139.83 million
|
|
|
| Shares
|
| Amount: | $5 million
|
| Shares: | 4,693,563
|
| Price: | C$1.103 (approximate)
|
| Agent: | Non-brokered
|
|
|
| Loan
|
| Amount: | $30 million
|
| Coupon: | Libor plus 650 bps
|
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