13% one-year loan, along with securing warrants, to be held by Vincere
By Devika Patel
Knoxville, Tenn., Dec. 8 – Oracle Mining Corp. said it signed a non-binding term sheet for a secured convertible loan to raise between $6.5 million and $7.5 million and C$20 million warrant sale with Vincere Resource Holdings LLC on Nov. 7.
The 13% loan is due in one year. Up to C$2,378,251 of the principal may be converted into 31,710,013 common shares at C$0.075 per share, which is a 50% premium to the C$0.05 closing price on Nov 7. The conversion price is also about a 30% premium to C$0.057, the volume-weighted average trading price of the stock for the five trading days preceding pricing, the company said in a press release.
For the C$20 million warrant sale, a company subsidiary will sell warrants for up to 66.7% of the subsidiary's outstanding equity interests to Vincere. These warrants will expire on the later of six months past the loan’s maturity date and when the loan has been fully repaid.
Settlement of the loan is expected Dec. 16.
Proceeds will be used to complete the technical work needed to prepare the Oracle Ridge copper project in Arizona for construction, to pay off some debt owed to Rich Stone Mining Investment (Hong Kong) Ltd. and for working capital and general corporate purposes.
Vincere invests in late-stage mining projects that can be brought to production within 18 months.
Oracle is a copper mining company in Vancouver, B.C.
| Issuer: | Oracle Mining Corp.
|
| Issue: | Secured convertible loan
|
| Amount: | Between $6.5 million and $7.5 million, C$20 million
|
| Maturity: | One year
|
| Coupon: | 13%
|
| Conversion price: | C$0.075 (for up to C$2,378,251 of loan)
|
| Warrants: | Up to C$20 million
|
| Expiration date: | The later of six months past the loan’s maturity date and when the loan has been fully repaid
|
| Investor: | Vincere Resource Holdings LLC
|
| Pricing date: | Nov. 8
|
| Settlement date: | Dec. 16
|
| Stock symbol: | Toronto: OMN
|
| Stock price: | C$0.05 at close Nov. 7
|
| Market capitalization: | C$1.72 million
|
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