Offering sells 8% notes to Resource Capital to fund feasibility study
By Devika Patel
Knoxville, Tenn., Dec. 4 ‑ First Bauxite Corp. said it will raise $4 million by selling an 8% convertible note to Resource Capital Fund V LP in a non-brokered private placement.
The notes, which are due in one year, are convertible into common shares at C$0.10 per share, a 42.86% premium to the Dec. 3 closing share price of C$0.07. The company may force conversion at the market price, or the 20-day volume-weighted-average price of the stock, at settlement.
Proceeds will be used to complete a feasibility study on the Flexible Project and for general working capital.
First Bauxite is based in Vancouver, B.C., and explores and develops bauxite deposits.
| Issuer: | First Bauxite Corp.
|
| Issue: | Convertible note
|
| Amount: | $4 million
|
| Maturity: | Jan. 19, 2016
|
| Coupon: | 8%
|
| Conversion price: | C$0.10
|
| Call: | At market price on settlement date
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Resource Capital Fund V LP
|
| Pricing date: | Dec. 4
|
| Stock symbol: | TSX Venture: FBX
|
| Stock price: | C$0.07 at close Dec. 3
|
| Market capitalization: | C$8.82 million
|
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