Investor to receive 1 million shares, 2 million warrants per $500,000
By Devika Patel
Knoxville, Tenn., Jan. 29 - VVC Exploration Corp. said it negotiated a $4 million loan facility with Aeris Trading Corp. The deal will settle in two equal tranches of $2 million each.
The loan is due in five years and carries a 12% coupon. The loan will be secured by half of subsidiary Camex Mining Development Group Inc.'s 33% ownership of the Samalayuca Copper Project in Chihuahua, Mexico.
Aeris also will receive 1 million bonus common shares and warrants for 2 million shares per each $500,000 drawdown, which are exercisable at C$0.08 for five years. The strike price is a 33.33% premium to the Jan. 28 closing share price of C$0.06.
Proceeds will be used to start production at the Samalayuca Copper Project and may also be used for corporate operations.
VVC is a Toronto-based precious minerals and base metals exploration and development company with gold and silver prospects in Mexico and Ontario.
| Issuer: | VVC Exploration Corp.
|
| Issue: | Loan facility, 1 million bonus common shares for each $500,000 drawdown
|
| Amount: | $4 million
|
| Maturity: | Five years
|
| Coupon: | 12%
|
| Warrants: | 2 million warrants for each $500,000 drawdown
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.08
|
| Investor: | Aeris Trading Corp.
|
| Settlement date: | Jan. 29
|
| Stock symbol: | TSX Venture: VVC
|
| Stock price: | C$0.06 at close Jan. 28
|
| Market capitalization: | C$8.82 million
|
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