By Laura Lutz
Des Moines, Sept. 19 - Macmin Silver Ltd. secured a convertible note facility for $9 million.
The note matures in three years and bears interest at 10% per year, payable quarterly in cash.
The subscriber, a U.S. investment group, will invest $4.5 million in each of two tranches that will close three months apart.
The investor will also receive options to purchase 5,000,000 shares at A$0.48 per share.
Beginning six months after the first closing date, the note will be convertible into common shares. The conversion price will be 150% of the volume-weighted average price of the shares over the 20 trading days before the first closing date.
The principal will be repaid in six payments, beginning six months after the first closing date. The note may be repaid in cash or in shares at a 3% discount to the volume-weighted average price prior to the payment.
Macmin may prepay the loan in cash at par at anytime.
Proceeds will be used to upgrade the crushing circuit at the company's Twin Hills mine, to maintain its exploration programs and to evaluate new silver project opportunities.
The first closing is expected in about two weeks.
Macmin is a silver exploration company based in Budall, Australia.
| Issuer: | Macmin Silver Ltd.
|
| Issue: | Convertible note
|
| Amount: | $9 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | 150% of the volume-weighted average price of the shares over 20 trading days before first closing date
|
| Call: | For par in cash
|
| Options: | For 5,000,000 shares
|
| Option strike price: | A$0.48
|
| Announcement date: | Sept. 19
|
| Stock symbol: | Australia: MMN
|
| Stock price: | A$0.27 at close Sept. 19
|
© 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.
