Offering sells 8% secured notes due Aug. 1, 2017 to Resource Capital
By Devika Patel
Knoxville, Tenn., March 8 – First Bauxite Corp. said it settled an $11 million second and final tranche of a $15 million non-brokered private placement of 8% secured convertible notes with Resource Capital Fund V LP. The deal raised $4 million on Oct. 30.
The notes, which are due Aug. 1, 2017, are convertible into common shares at C$0.05698 per share in the first year and at C$0.10 per share after the first year. The conversion prices are 42.45% and 150% premiums to the Oct. 29 closing share price of C$0.04. The company may prepay the note.
Proceeds will be used for detailed engineering on the mining and beneficiation plant in Guyana for the Bonasika bauxite project, analysis of the ceramics proppant market, mining of a bulk sample to manufacture large scale proppant samples for market tests in select oil and gas wells and general working capital.
First Bauxite is based in Vancouver, B.C., and explores and develops bauxite deposits.
| Issuer: | First Bauxite Corp.
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| Issue: | Secured convertible notes
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| Amount: | $15 million
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| Maturity: | Aug. 1, 2017
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| Coupon: | 8%
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| Conversion price: | C$0.05698 in the first year, C$0.10 after the first year
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| Call: | Yes
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| Warrants: | No
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| Agent: | Non-brokered
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| Investor: | Resource Capital Fund V LP
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| Pricing date: | Oct. 30 (for $4 million), March 8 (for $11 million)
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| Stock symbol: | TSX Venture: FBX
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| Stock price: | C$0.04 at close Oct. 29
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| Market capitalization: | C$5.29 million
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