By Devika Patel
Knoxville, Tenn., March 31 - Liberty Mines Inc. said it has modified a private placement of units. The deal, which priced March 10, also is being increased to C$25 million from C$21 million.
The company will sell units of one unsecured promissory note and 200 transferable warrants. Originally, the units were to have 150 warrants.
Each C$1,000 note will carry a 14% coupon, increased from a 12% coupon, which now is to be prepaid in full at closing, instead of being paid semi-annually for three years. Each warrant still will be exercisable at C$2.50 for two years.
If the company's stock closes at less than C$2.50 when the warrants expire, holders may force Liberty Mines to repurchase the warrants.
The warrants also may expire earlier if Liberty's common shares close at C$3.75 or higher for 15 consecutive trading days. In that case, the warrants will expire 30 days after the company notifies holders.
Closing is expected around April 9.
Salman Partners Inc. will lead a syndicate of agents for this deal. The agents will receive a 6% commission.
Proceeds will be used for acquisitions, exploration and general working capital.
Liberty Mines is a Timmins, Ont.-based mineral exploration and development company.
| Issuer: | Liberty Mines Inc.
|
| Issue: | Units of one unsecured promissory note and 200 warrants
|
| Amount: | C$25 million
|
| Units: | 25,000
|
| Price: | C$1,000
|
| Coupon: | 14%
|
| Maturity: | Three years
|
| Warrants: | 200 warrants per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.50
|
| Agents: | Salman Partners Inc. (lead)
|
| Fees: | 6%
|
| Pricing date: | March 10
|
| Amended: | March 31
|
| Settlement date: | April 9
|
| Stock symbol: | Toronto: LBE
|
| Stock price: | C$1.50 at close Oct. 29
|
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