0% unsecured notes convert into common stock with a 6.73% discount
By Devika Patel
Knoxville, Tenn., June 24 - ECU Silver Mining Inc. said that it negotiated a C$15 million private placement of 0% unsecured convertible notes, which will be sold at par to Golden Minerals Co.
The notes may be converted into common shares at C$0.97 per share, which is a 6.73% discount to the C$1.04 closing sale price of the shares on June 23. They are due on June 30, 2012, and the maturity may be extended by six months. The notes may also be called.
Proceeds will be used for general corporate purposes and for ECU's ongoing expansion plans at Velardeņa.
The company also said it has negotiated an agreement with the investor under which the two companies will combine, creating a new junior silver mining company with a portfolio of growth projects, primarily in Mexico and Argentina. The combined company will retain the Golden Minerals name and remain based in Golden, Colo.
| Issuer: | ECU Silver Mining Inc.
|
| Issue: | Unsecured convertible notes
|
| Amount: | C$15 million
|
| Maturity: | June 30, 2012
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion price: | C$0.97
|
| Call: | Yes
|
| Warrants: | No
|
| Investor: | Golden Minerals Co.
|
| Pricing date: | June 24
|
| Stock symbol: | Toronto: ECU
|
| Stock price: | C$1.04 at close June 23
|
| Market capitalization: | C$302.53 million
|
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