By Sheri Kasprzak
New York, March 9 - MBA Resources Corp. has priced a C$1.85 million convertible debenture offering to finance its acquisition and the reworking of the Gordon Creek natural gas field in Utah.
The two-year debentures and are convertible into common shares at C$0.185 each.
The coupon of the debenture could not be determined by press time Thursday.
The investors in the non-brokered deal will also receive warrants equal to the shares issuable upon conversion at C$0.185 each for two years.
Under the terms of the acquisition, MBA plans to purchase a 50% interest in the Gordon Creek project, a gas field in Carbon County, Utah. The project will be acquired jointly with Fellows Energy Ltd. and the two companies will jointly operate the project.
The acquisition is slated to close March 13, and the terms of the acquisition are being held confidential until closing.
Based in Vancouver, B.C., MBA is an oil and natural gas exploration company.
| Issuer: | MBA Resources Corp.
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| Issue: | Convertible debentures
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| Amount: | C$1.85 million
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| Conversion price: | C$0.185
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| Warrants: | Equal to the number of shares issuable upon conversion
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.185
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| Placement agent: | Non-brokered
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| Pricing date: | March 8
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| Stock symbol: | TSX Venture: MBA
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| Stock price: | C$0.185 at close March 8
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