By Devika Patel
Knoxville, Tenn., Jan. 22 - Endeavour Silver Corp. said it has arranged an C$8 million private placement of 10% subordinated unsecured convertible redeemable debentures due February 2014.
The company will sell up to 8,000 debentures at C$1,000 per debenture, with a C$4 million greenshoe of 4,000 debentures. The debentures may be redeemed at any time after 18 months, under certain conditions, for a 7% redemption fee.
The notes are convertible at any time into units at a conversion price of C$1.90. The units each consist of about 526 common shares and about 263 warrants. Each warrant is exercisable at C$2.05 for five years.
Euro Pacific Capital Inc. is the lead agent.
Proceeds will be used will be used to acquire mining equipment, develop underground access to mineralized zones and upgrade certain plant circuits at the company's Guanacevi and Guanajuato mines in Mexico and for general corporate purposes.
Based in Vancouver, B.C., Endeavour is a silver exploration company.
| Issuer: | Endeavour Silver Corp.
|
| Issue: | Subordinated unsecured convertible debentures, convertible into units of about 526 common shares and about 263 warrants
|
| Amount: | C$8 million
|
| Greenshoe: | C$4 million
|
| Maturity: | February 2014
|
| Coupon: | 10%
|
| Price: | Par of C$1,000
|
| Yield: | 10%
|
| Conversion price: | C$1.90
|
| Warrants: | About 263 warrants per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$2.05
|
| Agent: | Euro Pacific Capital Inc. (lead)
|
| Pricing date: | Jan. 22
|
| Stock symbol: | Toronto: EDR
|
| Stock price: | C$1.58 at close Jan. 21
|
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