By Angela McDaniels
Tacoma, Wash., May 26 - MBMI Resources Inc. has executed a term sheet for a secured two-year 10% convertible debenture for up to C$1.5 million and a two-year bridge loan for up to C$1.5 million and has arranged an up to C$525,000 non-brokered private placement of units, according to a company news release.
The debenture will be convertible into units for C$0.09 per unit.
These units are comprised of a common share and one warrant. Each warrant will be exercisable for one common share at a price of C$0.13 for two years from the date of conversion.
MBMI said it will issue up to 4.8 million common shares to the bridge loan lenders at closing.
Unit placement
In the C$525,000 private placement of units, MBMI will sell up to 7 million units at C$0.075 apiece.
Each unit consists of one common share and one warrant. Each warrant entitles the holder to purchase one share at a price of C$0.10 for two years.
The proceeds of the financings will be used for exploration and development of the company's Philippine nickel mineral properties and for general corporate purposes.
MBMI Resources is a Vancouver, B.C.-based mining company focused on the exploration and development of nickel mineral properties.
| Issuer: | MBMI Resources Inc.
|
| Issue: | Convertible debenture, bridge loan, units
|
| Amount: | Up to C$3,525,000
|
| Pricing date: | May 25
|
| Stock symbol: | TSX Venture: MBR
|
| Stock price: | C$0.08 at close May 25
|
|
|
| Debenture
|
| Issue: | Debenture convertible into units of one common share and one warrant
|
| Amount: | Up to C$1.5 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Conversion price: | C$0.09 per unit
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.13
|
|
|
| Loan
|
| Issue: | Bridge loan
|
| Amount: | Up to C$1.5 million
|
| Maturity: | Two years
|
|
|
| Units
|
| Issue: | Units of one common share and one warrant
|
| Amount: | Up to C$525,000
|
| Units: | Up to 7 million
|
| Price: | C$0.075
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
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