By Devika Patel
Knoxville, Tenn., May 7 - Formation Metals Inc. said it has settled a C$10 million non-brokered private placement of an unsecured convertible debenture and units.
Coalcorp Mining Inc. bought the 18-month 12% debenture, which may be converted into common shares at an initial conversion price of C$1.50.
The company also sold 1,333,375 units of one common share and one half-share warrant at C$1.50 each. The whole warrants are exercisable at C$1.60 until May 6, 2012.
Proceeds will be used to finance development of the Idaho Cobalt Project and for other general corporate purposes and working capital.
Formation is a Vancouver, B.C.-based metals mining and refining company.
| Issuer: | Formation Metals Inc.
|
| Issue: | Units of one common share and one half-share warrant, unsecured convertible debenture
|
| Amount: | C$10 million
|
| Agent: | Non-brokered
|
| Settlement date: | May 7
|
| Stock symbol: | Toronto: FCO
|
| Stock price: | C$1.24 at close May 6
|
| Market capitalization: | C$42.8 million
|
|
|
| Debenture
|
| Amount: | C$8 million
|
| Maturity: | 18 months
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | C$1.50
|
| Investor: | Coalcorp Mining Inc.
|
|
|
| Units
|
| Amount: | C$2 million
|
| Units: | 1,333,375
|
| Price: | C$1.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | May 6, 2012
|
| Warrant strike price: | C$1.60
|
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