Notes will mature in three years and carry a 3% coupon
By Devika Patel
Knoxville, Tenn., Sept. 7 - Tanzanian Royalty Exploration Corp. said it arranged a C$1 million private placement of a three-year 3% convertible note and a separate C$1.25 million private placement of a similar note.
The C$1 million note converts into 221,337 common shares at C$4.518 per share, a 15% discount to the five-day weighted average trading price of the common shares for the period ending Aug. 9.
The C$1.25 million note converts into 241,453 common shares at C$5.177 per share, the five-day weighted average trading price of the common shares for the period ended Sept. 3.
Proceeds will be used to purchase equipment and for general corporate expenses.
Tanzanian Royalty is a gold exploration company based in South Surrey, B.C.
| Issuer: | Tanzanian Royalty Exploration Corp.
|
| Issue: | Convertible note
|
| Amount: | C$2.25 million
|
| Maturity: | Three years
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Warrants: | No
|
| Pricing date: | Sept. 7
|
| Stock symbol: | Toronto: TNX
|
| Stock price: | C$6.65 at close Sept. 3
|
| Market capitalization: | C$605.94 million
|
|
|
| C$1 million note
|
| Amount: | C$1 million
|
| Conversion price: | C$4.518
|
| Conversion ratio: | Into 221,337 shares
|
| Conversion discount: | 15%
|
|
|
| C$1.25 million note
|
| Amount: | C$1.25 million
|
| Conversion price: | C$5.177
|
| Conversion ratio: | Into 241,453 shares
|
| Conversion discount: | None
|
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