Proceeds finance planned acquisition of Potreritos property in Mexico
By Devika Patel
Knoxville, Tenn., Dec. 22 - Virgin Metals Inc. said it raised C$1.1 million in a non-brokered private placement of secured convertible debentures.
The 8% debenture matures in two years. It converts to common stock at an initial conversion price of C$0.30, which is a 62.16% premium to C$0.185, the Dec. 21 closing share price. It is secured by a mortgage over the company's Los Verdes property.
The company may redeem the debenture after March 31, 2012 or force conversion.
Proceeds will be used to finalize the acquisition of the Potreritos property in Sonora, Mexico, as well as for working capital and general administrative purposes
Virgin Metals is a Toronto-based exploration company that focuses on copper-molybdenum porphyry properties.
| Issuer: | Virgin Metals Inc.
|
| Issue: | Secured convertible debenture
|
| Amount: | C$1,095,000
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Conversion price: | C$0.30
|
| Conversion premium: | 62.16%
|
| Call: | After March 31, 2012
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Settlement date: | Dec. 22
|
| Stock symbol: | TSX Venture: VGM
|
| Stock price: | C$0.185 at close Dec. 21
|
| Market capitalization: | C$6.71 million
|
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