Deal was negotiated with investor Sprott Resource Lending Partnership
By Devika Patel
Knoxville, Tenn., March 23 – Focus Ventures Ltd. negotiated a $5 million secured loan facility with Sprott Resource Lending Partnership, according to a 6-K filed Monday with the Securities and Exchange Commission.
The 12% loan is due on Sept. 30, 2016. It may be prepaid with a $300,000 penalty. The company also paid a $30,000 facility fee.
The deal also included a structuring fee of $75,000 in cash, a 2.5% drawdown fee and a commitment fee of 1.25 million warrants, exercisable at a 30% premium to market for five years.
Settlement of the first draw is expected March 25.
Proceeds will be used to purchase the Bayovar Interest and for advancement of the Bayovar 12 Project.
Focus Ventures is a gold explorer based in Vancouver, B.C.
| Issuer: | Focus Ventures Ltd.
|
| Issue: | Secured loan facility
|
| Amount: | $5 million
|
| Maturity: | Sept. 30, 2016
|
| Coupon: | 12%
|
| Call: | $300,000 penalty
|
| Warrants: | 1.25 million (commitment fee)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 30% premium to market
|
| Investor: | Sprott Resource Lending Partnership
|
| Fees: | $75,000 in cash, a 2.5% drawdown fee and a commitment fee of 1.25 million warrants
|
| Pricing date: | March 23
|
| Settlement date: | March 25
|
| Stock symbol: | TSX Venture: FCV
|
| Stock price: | C$0.25 at close March 20
|
| Market capitalization: | C$18.06 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
