By Sheri Kasprzak
Atlanta, Jan. 25 - Muskox Minerals Corp. said it closed a private placement of C$1.15 million in an unsecured convertible debenture with RAB Special Situations LP.
The debenture matures Jan. 22, 2010 and does not bear interest.
The debenture is convertible in whole or part into units at C$0.12 through Jan. 21, 2007, C$0.132 from Jan. 22, 2007 through Jan. 21, 2008, C$0.143 from Jan. 22, 2008 through Jan. 21, 2009 and C$0.1573 from Jan. 22, 2009 through Jan. 21, 2010.
The units are comprised of one share and one warrant.
The warrants allow for an additional share at a price equal to the conversion price in effect at the time of exercise. The warrants are exercisable during the period ending the earlier of one year from the date of issuance and Jan. 21, 2010.
After receiving approval for a five-for-one consolidation of Muskox's shares, the conversion and exercise prices will be changed to C$0.66 through Jan. 21, 2007, C$0.66 from Jan. 22, 2007 through Jan. 21, 2008, C$0.715 from Jan. 22, 2008 through Jan. 21, 2009 and C$0.7865 from Jan. 22, 2009 through Jan. 21, 2010.
Muskox also said it plans to raise C$2 million through a short-form prospectus offering of 9,230,770 flow-through shares at C$0.13 each and 6,153,840 units of one share and one half-share warrant at C$0.13 each. Wolverton Securities Ltd. is placement agent.
Muskox, based in Calgary, Alta., is a precious metals exploration, development and discovery company. The proceeds from the offering will be used for exploration work on its Nunavut property and its Yellowjacket property in British Columbia. The remainder will be used for working capital.
| Issuer: | Muskox Minerals Corp.
|
| Issue: | Unsecured debenture
|
| Amount: | C$1.15 million
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| Maturity: | Jan. 22, 2010
|
| Coupon: | None
|
| Conversion price: | Into units at C$0.12 through Jan. 21, 2007, C$0.132 from Jan. 22, 2007 through Jan. 21, 2003, C$0.143 from Jan. 22, 2008 through Jan. 21, 2009 and C$0.1573 from Jan. 22, 2009 through Jan. 21, 2010
|
| Units: | One share and one warrant
|
| Warrants: | One warrant per unit from conversion
|
| Warrant expiration: | The earlier of one year from the date of issuance and Jan. 21, 2010
|
| Warrant strike price: | Equal to the conversion price at exercise of warrant
|
| Settlement date: | Jan. 25
|
| Stock price: | C$0.125 at close Jan. 25
|
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