Investor RMB Australia Holdings gets warrants for 13,864,300 shares
By Devika Patel
Knoxville, Tenn., Dec. 20 - Mercator Minerals Ltd. said it has reached an agreement with RMB Australia Holdings Ltd. for a C$30 million three-year corporate debt facility. The company has drawn down C$27.3 million.
The facility accrues interest at Libor plus 700 basis points and is due Dec. 20, 2015.
The investor also will receive warrants for 13,864,300 shares, which are each exercisable at C$0.52 for four years. The strike price reflects a 10.64% premium to the Dec. 19 closing share price of C$0.47.
The facility includes an arrangement fee of 4.5%, payable to RMB Resources Inc.
Based in Vancouver, B.C., Mercator is a copper mining company.
| Issuer: | Mercator Minerals Ltd.
|
| Issue: | Debt facility
|
| Amount: | C$30 million
|
| Tenor: | Dec. 20, 2015
|
| Coupon: | Libor plus 700 bps
|
| Warrants: | For 13,864,300 shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | C$0.52
|
| Investor: | RMB Australia Holdings Ltd.
|
| Fees: | 4.5%
|
| Pricing date: | Dec. 20 (for C$27.3 million)
|
| Stock symbol: | Toronto: ML
|
| Stock price: | C$0.47 at close Dec. 19
|
| Market capitalization: | C$141.67 million
|
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