Company offers three-year unsecured notes to fund acquisitions
By Devika Patel
Knoxville, Tenn., Jan. 31 - MGold Resources Inc. said it plans a C$3 million non-brokered private placement of three-year 10% unsecured convertible debentures.
The debenture converts to common stock at a conversion price of C$0.07 per share in the first year, C$0.11 per share in the second year and at C$0.15 per share in the third year. The conversion prices are respective 133.33%, 266.67% and 400% premiums to C$0.03, the Jan. 30 closing share price.
The company may force conversion.
Settlement is expected on March 29.
Proceeds will be used for oil and gas asset acquisitions, general corporate and working capital purposes.
MGold is a Montreal-based gold and base metal exploration company.
| Issuer: | MGold Resources Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$3 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | C$0.07 in the first year, C$0.11 in the second year and C$0.15 in the third year
|
| Call: | Yes
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Jan. 31
|
| Settlement date: | March 29
|
| Stock symbol: | TSX Venture: MNI
|
| Stock price: | C$0.03 at close Jan. 30
|
| Market capitalization: | C$903,600
|
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