Notes were sold along with five-year warrants for 3.4 million shares
By Devika Patel
Knoxville, Tenn., April 15 - Veris Gold Corp. said it settled a $10 million private placement of convertible senior unsecured promissory notes.
The 9% notes convert to common stock at the greater of C$0.75 and the market price.
The notes mature in eight months.
The investors also received five-year warrants for 3.4 million shares. The warrants are each exercisable at $1.80.
Proceeds will be used to complete development of the Starvation Canyon Mine and to start underground development of the Saval 4 portal.
Veris is a Vancouver, B.C.-based gold exploration company.
| Issuer: | Veris Gold Corp.
|
| Issue: | Convertible senior unsecured promissory notes
|
| Amount: | $10 million
|
| Maturity: | Eight months
|
| Coupon: | 9%
|
| Conversion price: | The greater of C$0.75 and the market price
|
| Warrants: | For 3.4 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.80
|
| Settlement date: | April 15
|
| Stock symbol: | Toronto: VG
|
| Stock price: | C$1.57 at close April 12
|
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