By Sheri Kasprzak
New York, Sept. 11 - Galahad Gold plc concluded a C$20 million private placement of an exchangeable debenture with an institutional investor.
The 5% debenture is due Sept. 6, 2007. At maturity the debentures pays par plus the percentage increase in Northern Dynasty Minerals Ltd.'s stock over the exchange price of C$9.25, with the final level being calculated as the VWAP of Northern Dynasty's stock for the five trading days ending the trading day before maturity.
The debenture also exchanges on the same terms in the event it is called by Gallahad.
Galahad intends to use the proceeds from the offering to fund the exercise of 1,116,500 Northern Dynasty warrants. The rest will be used to repay an overdraft facility from Barclays Bank plc and to finance a £1.7 million pre-feasibility study for subsidiary International Molybdenum plc.
Based in London, Galahad Gold is a gold exploration company.
| Issuer: | Galahad Gold plc
|
| Issue: | Debenture
|
| Underlying stock: | Northern Dynasty Minerals Ltd.
|
| Amount: | C$20 million
|
| Maturity: | Sept. 6, 2007
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Exchange price: | C$9.25 (At maturity or Galahad's option only)
|
| Call: | At any time, with same exchange calculation at maturity
|
| Warrants: | No
|
| Settlement date: | Sept. 11
|
| Stock symbol: | London: GLA
|
| Stock price: | 9.75p at close Sept. 8
|
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