5% unsecured debentures due in five years, convert at C$0.50 per share
By Devika Patel
Knoxville, Tenn., May 25 – Northern Vertex Mining Corp. said it will raise C$7.5 million in a non-brokered private placement of unsecured convertible debentures.
The company will sell the five-year 5% convertibles in C$100 increments and may repay the debt with common shares.
The debentures initially convert into common stock at C$0.50 per share. The conversion price is a 25% premium to the C$0.40 closing share price on May 24 and is also equal to a conversion ratio of 2,000 shares per C$1,000 of debentures.
The debentures may be redeemed at par plus interest after two years if the share price equals or exceeds C$0.625 for the 20 consecutive trading days preceding the conversion notice.
Proceeds will be used to advance the Moss Mine Gold-Silver property and for general corporate purposes.
“This is a significant step forward in our funding plans for the development of the Moss Mine. At the same time, it is a vote of confidence in the project, the development plan for the mine and the State of Arizona. We are continuing to implement our funding plans with a view to being able to initiate final development and construction planning in the near term.” president and chief executive officer Dick Whittington said in a press release.
Based in Vancouver, B.C., Northern Vertex is a gold explorer.
| Issuer: | Northern Vertex Mining Corp.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$7.5 million
|
| Maturity: | Five years
|
| Coupon: | 5%
|
| Price: | Par of C$100
|
| Conversion price: | C$0.50
|
| Conversion premium: | 25%
|
| Conversion ratio: | 2,000 common shares per C$1,000 of debentures
|
| Call: | After two years
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | May 25
|
| Stock symbol: | TSX Venture: NEE
|
| Stock price: | C$0.40 at close May 24
|
| Market capitalization: | C$34.38 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
