By Susanna Moon
Chicago, July 19 - Metals Exploration plc said it raised £6,305,000 from a private placement of shares and a convertible note issue.
The company sold 10,762,500 shares at 40p each, which represents a 4% discount to the closing mid-price of 41.75p on July 18, for proceeds of £4,305,000.
Metals Exploration also issued a £2 million convertible note issue with a coupon of 9% per year and conversion price of 52p per share, which represents a 30% premium to the placing price.
The notes are convertible at any time before the close of business on Aug. 1, 2011 into 3,846,154 shares.
Investors can require the company to redeem the notes for 101% of the principal plus accrued interest if there is a change of control with the acquisition of voting control of more than 50% of the company's stock.
Proceeds will be used for drilling and for other corporate purposes.
Metals Exploration is a London-based minerals exploration company focused on the Philippines.
| Issuer: | Metals Exploration plc
|
| Issue: | Shares and convertible note
|
| Amount: | £6,305,000
|
| Pricing date: | July 18
|
| Stock symbol: | London: MTL
|
| Stock price: | 42.50p at close July 17
|
|
|
| Shares
|
| Amount: | £4,305,000
|
| Shares: | 10,762,500
|
| Price: | 40p
|
| Warrants: | No
|
|
|
| Convertible note
|
| Amount: | £2 million
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | 52p
|
| Conversion premium: | 30%
|
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