By Sheri Kasprzak
New York, April 4 - Golden China Resources Corp. said it has concluded its previously announced private placement for C$18 million, settling the final tranche for C$1,145,000.
In the latest closing, the company sold 1,145 subscription receipts.
The receipts include C$1,000 in principal of senior secured convertible debentures, 500 shares and 500 warrants, exchangeable once the company acquires 50% interest in the BioGold processing plant held by Michelago Ltd.
Each warrant is exercisable at C$0.42 each for three years.
The 11.5% debentures mature in two years and are convertible into common shares at C$0.35.
The notes may be prepaid any time after the first anniversary of closing at 102% of face value plus interest.
The first tranche of the deal, including the greenshoe for 3,000 units exercised by a syndicate of agents led by Haywood Securities Inc., closed on Feb. 10. In the first tranche, the company sold a total of 12,600 receipts. The second tranche, for 4,255 units, closed on March 6.
The syndicate of agents also included Blackmont Capital Inc.
Proceeds will be used to meet the company's commitment under a business combination agreement with Michelago Ltd., including a loan to Michelago for US$9.2 million. The rest of the proceeds will be used for working capital and general corporate purposes.
Based in Toronto, Golden China is a precious metals exploration and development company.
| Issuer: | Golden China Resources Corp.
|
| Issue: | Receipts exchangeable for units of C$1,000 in senior secured convertible debentures, 500 common shares, 500 warrants
|
| Amount: | C$1,145,000
|
| Units: | 1,145
|
| Price: | C$1,000
|
| Maturity: | Two years
|
| Coupon: | 11.5%
|
| Price: | Par
|
| Yield: | 11.5%
|
| Conversion price: | C$0.35
|
| Call: | May be prepaid at 102% of face value plus interest
|
| Warrants: | For 500 shares per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.42
|
| Placement agents: | Haywood Securities Inc. (lead), Blackmont Capital Inc.
|
| Pricing date: | Jan. 26
|
| Settlement date: | April 4
|
| Stock symbol: | TSX Venture: AUC
|
| Stock price: | C$0.29 at close Jan. 26
|
| Stock price: | C$0.33 at close April 3
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