Deals fund pre-development work and construction activities at Ilovica
By Devika Patel
Knoxville, Tenn., April 8 – Euromax Resources Ltd. said it plans a C$5.2 million convertible loan, a $5 million private placement of stock and a $20 million subordinated loan with CC Mining SA. It also may conduct a $5 million second convertible loan with another investor.
The first convertible loan is due May 30, 2018, carries a 9% coupon and converts to common stock at C$0.40 per share, which is identical to the April 7 closing share price.
The company also will sell $5 million of common shares at 90% of the lower of the then prevailing market price and the 20-day volume-weighted average price prior to settlement.
The subordinated loan matures in 10 years and bears interest at six-month Libor plus 800 basis points.
In addition, an insider is mulling an investment of up to $5 million through a non-brokered private placement of a 12.5% convertible loan, which would be convertible into shares at C$0.40 per share.
Settlement of the first convertible loan is expected April 30.
Proceeds will be used for pre-development work, including the front-end engineering design and further optimization studies for the Ilovica project in Macedonia and construction activities at Ilovica.
Vancouver, B.C.-based Euromax is a gold and base metal explorer with a European focus.
| Issuer: | Euromax Resources Ltd.
|
| Issue: | Convertible loan, common stock, subordinated loan
|
| Amount: | $30 million, C$5.2 million
|
| Warrants: | No
|
| Pricing date: | April 8
|
| Settlement date: | April 30 (for C$5.2 million)
|
| Stock symbol: | TSX Venture: EOX
|
| Stock price: | C$0.40 at close April 7
|
| Market capitalization: | C$52.58 million
|
|
|
| First convertible loan
|
| Amount: | C$5.2 million
|
| Maturity: | May 30, 2018
|
| Coupon: | 9%
|
| Conversion price: | C$0.40
|
| Investor: | CC Mining SA
|
|
|
| Stock
|
| Amount: | $5 million
|
| Price: | 90% of the lower of the then prevailing market price and the 20-day volume weighted average price prior to settlement
|
| Investor: | CC Mining SA
|
|
|
| Subordinated loan
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| Amount: | $20 million
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| Maturity: | 10 years
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| Coupon: | Six-month Libor plus 800 bps
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| Investor: | CC Mining SA
|
|
|
| Second convertible loan
|
| Amount: | $5 million
|
| Coupon: | 12.5%
|
| Conversion price: | C$0.40
|
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