By Devika Patel
Knoxville, Tenn., Aug. 12 - Firstgold Corp. arranged a $15.75 million private placement of promissory notes on June 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The financing will occur in five tranches. The first settled on Aug. 7 for $6.74 million.
The second tranche, for $5.26 million, is scheduled for Aug. 30. It will settle upon the company receiving certain operating and reclamation permits relating to its Relief Canyon Mine properties.
Three additional tranches of $1.25 million each will settle during November, December and January, after the company achieves certain operational conditions.
The notes, sold to Platinum Long-Term Growth, LLC and Lakewood Group, LLC, will mature on March 1, 2010. They bear interest at 4%.
The investors also received warrants for 15 million common shares. The warrants are exercisable at $0.4375 for three years. The strike price is subject to adjustment.
The company may be forced to buy back the warrants at $0.30 apiece for one year beginning Aug. 7, 2009.
Firstgold is a mining company based in Cameron Park, Calif.
| Issuer: | Firstgold Corp.
|
| Issue: | Promissory notes
|
| Amount: | $15.75 million
|
| Maturity: | March 1, 2010
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Warrants: | For 15 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.4375
|
| Investors: | Platinum Long-Term Growth, LLC and Lakewood Group, LLC
|
| Settlement date: | Aug. 7 (for $6,742,625), Aug. 30 (for $5,257,375)
|
| Stock symbol: | OTCBB: FGOC
|
| Stock price: | $0.40 at close Aug. 7
|
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