Investor proposes private placement of convertible note, warrant
By Angela McDaniels
Tacoma, Wash., March 20 - Mediterranean Resources Ltd. received a proposal from an investor to purchase a C$1 million convertible note in a private placement.
The offer contemplates a C$0.05 conversion price for the note and "a full C$0.05 warrant with a three-year expiry."
The conversion price and warrant strike price are a 67% premium to the company's C$0.03 closing share price on March 19.
The proposal was received from Robert Abenante, chief executive officer of Blox Inc., but the investor was not revealed to Mediterranean Resources.
The company said its board is considering this proposal in light of an equity offer from the Swiss investors who agreed to participate in the company's C$115,000 private placement of units, which was announced March 18.
"The board is cognizant that a company such as [Mediterranean Resources], with no prospect of production before early 2016 at the earliest, would, in accepting Mr. Abenante's offer, become indebted with no means of servicing such debt," the board said in the news release.
Mediterranean Resources is based in Vancouver, B.C. It is developing a gold/copper deposit and a gold/zinc/lead deposit in Turkey.
| Issuer: | Mediterranean Resources Ltd.
|
| Issue: | Convertible note
|
| Amount: | C$1 million
|
| Conversion price: | C$0.05
|
| Warrant: | Yes
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.05
|
| Announcement date: | March 20
|
| Stock symbol: | Toronto: MNR
|
| Stock price: | C$0.03 at close March 19
|
| Market capitalization: | C$4.37 million
|
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