By Laura Lutz
Des Moines, Dec. 29 - International Wayside Gold Mines Ltd. arranged a senior secured financing for US$10 million.
The 10% loan, which will be settled in one or more tranches, will mature on June 29, 2007. It will pay interest monthly.
The investors will receive bonus warrants equal to 33.3% of the amounts advanced under the loan. Each warrant will be exercisable at C$0.30 for two years.
Expiry of the warrants may be accelerated to 30 days if the closing price of the company's shares exceeds C$1.00 for 10 consecutive trading days.
The notes will be convertible into units of one share and one half-share warrant at C$0.25 per unit. Each whole warrant will be exercisable at C$0.30 for two years. The warrants will be subject to the same accelerated expiry terms as the bonus warrants.
Karver Capital Holding Ltd. will be the principal investor for the deal. Karver will advance to the company a bridge loan of US$3,772,352 on Dec. 29.
Of the proceeds, C$3.5 million will be used to pay the final amounts that the company owes to Mosquito Consolidated Gold Mines Ltd. The remaining proceeds will be used to settle outstanding litigation, to clear all liens on properties, to settle some accounts payable and for working capital.
Wayside is a Vancouver, B.C.-based gold mining company.
| Issuer: | International Wayside Gold Mines Ltd.
|
| Issue: | Senior secured notes convertible into units of one share and one half-share warrant
|
| Amount: | US$10 million
|
| Maturity: | June 29, 2007
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.25 per unit
|
| Warrants: | For 33.3% of amount of loan; one half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.30
|
| Investor: | Karver Capital Holding Ltd. (lead)
|
| Pricing date: | Dec. 29
|
| Stock symbol: | TSX Venture: WGM
|
| Stock price: | C$0.24 at close Dec. 29
|
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