12% loan with Pala Investments converts at C$1.11 per common share
By Devika Patel
Knoxville, Tenn., June 3 – Nevada Copper Corp. said it will draw another $5 million under its $21.7 million 12% convertible subordinated loan facility with Pala Investments Ltd., bringing the total debt to $26.7 million.
The loan is due on Dec. 31, 2017. It may be converted into common shares at C$1.11 per share, which is a 58.57% premium to the June 2 closing share price of C$0.70, and is also a 15% premium to the 20-day volume-weighted average price of the stock at pricing, the company said in a press release.
Pala also will receive 2.5 million three-year warrants, which are each exercisable at $1.20, a 71.43% premium to the June 1 closing price.
The company paid a $200,000 arrangement fee.
Settlement is expected June 9.
Proceeds will be used for development and general corporate purposes at the company’s Vanadio de Maracas Menchen Mine in Brazil.
Nevada Copper is a copper, gold, silver and iron magnetite resource mining company based in Vancouver, B.C.
| Issuer: | Nevada Copper Corp.
|
| Issue: | Convertible subordinated loan facility
|
| Amount: | $26.7 million
|
| Maturity: | Dec. 31, 2017
|
| Coupon: | 12%
|
| Conversion price: | C$1.11
|
| Warrants: | 2.5 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$1.20
|
| Investor: | Pala Investments Ltd.
|
| Fees: | $200,000
|
| Announcement date: | June 3
|
| Settlement date: | June 9 (for $5 million)
|
| Stock symbol: | Toronto: NCU
|
| Stock price: | C$0.70 at close June 2
|
| Market capitalization: | C$57.16 million
|
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