Company offers 9% unsecured debentures due June 30, 2016, to Sentient
By Devika Patel
Knoxville, Tenn., April 30 - Marengo Mining Ltd. said it reduced a non-brokered private placement of 9% unsecured convertible debentures to $15 million from $18.8 million. The deal with Sentient Executive GP IV, Ltd. priced on April 16.
The debenture converts to common stock at a conversion price of C$0.11 per share, reduced from C$0.14 per share. The conversion price is an 8.33% discount to C$0.12, the April 15 closing share price. The notes mature on June 30, 2016.
Settlement of the initial $9 million tranche is expected May 3.
Proceeds will be used for the development of the Yandera Project, including completion of the feasibility study and finalizing the engineering, procurement and construction contract, completion of a deep drilling campaign and for general corporate purposes.
Marengo is a mining company based in West Perth, Western Australia.
| Issuer: | Marengo Mining Ltd.
|
| Issue: | Unsecured convertible debenture
|
| Amount: | $15 million
|
| Maturity: | June 30, 2016
|
| Coupon: | 9%
|
| Conversion price: | C$0.11
|
| Conversion premium: | 16.67%
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Sentient Executive GP IV, Ltd.
|
| Pricing date: | April 16
|
| Revised: | April 30
|
| Settlement date: | May 3 (for $9 million)
|
| Stock symbol: | Toronto: MRN
|
| Stock price: | C$0.12 at close April 15
|
| Market capitalization: | C$113.79 million
|
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