One-year debt was issued to BG Capital Group; loan converts at $0.125
By Devika Patel
Knoxville, Tenn., Oct. 17 – Liberty Silver Corp. said it settled a $1.25 million 11% convertible loan financing with BG Capital Group Ltd. The company has already drawn down $350,000.
The one-year loan is convertible into common stock at $0.0125 per share, which is a 37.5% discount to the Oct. 16 closing share price of $0.02.
Proceeds will be used for drilling, metallurgical work, environmental permitting, surveying and other exploration expenses at the Trinity Project as well as land taxes and fees and general working capital purposes.
“The loan will allow us to advance operations while we consider alternatives for more enduring sources of financing,” the chairman of the board of directors, Tim Unwin, said in a press release.
The company also said it has repaid the full $1.25 million of principal and interest owed on a $1.21 million secured loan facility with BG Capital. The debt was repaid by converting the loan into 99,892,296 common shares at a deemed price of $0.0125 per share.
Liberty is a silver exploration company with headquarters in Reno, Nev., and Toronto.
| Issuer: | Liberty Silver Corp.
|
| Issue: | Convertible loan
|
| Amount: | $1 million
|
| Maturity: | One year
|
| Coupon: | 11%
|
| Conversion price: | $0.0125
|
| Warrants: | No
|
| Investors: | BG Capital Group Ltd.
|
| Settlement date: | Oct. 17 (for $350,000)
|
| Stock symbol: | OTCBB: LBSV
|
| Stock price: | $0.02 at close Oct. 16
|
| Market capitalization: | $1.78 million
|
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