Loan settles in two tranches; investor also receives common shares
By Devika Patel
Knoxville, Tenn., Dec. 2 - Ressources Appalaches announced it raised $7.5 million in the second tranche of a $10 million loan financing. The deal raised $2.5 million in May.
The loan has an 8% coupon. In consideration for the loan, the lender received 4.5 million common shares.
The financing is amortized by the delivery of 10,125 ounces of gold over a period of 27 months beginning in the ninth month following the second tranche.
Axiom Capital Management Inc. will be paid a finder's fee of 5 million shares.
Proceeds will be used to complete the refurbishment of the Dufferin Mine and advance the project to gold production.
Ressources Appalaches is a metals exploration company based in Rimouski, Quebec.
| Issuer: | Ressources Appalaches
|
| Issue: | Loan, 4.5 million common shares
|
| Amount: | $10 million
|
| Coupon: | 8%
|
| Warrants: | No
|
| Settlement dates: | May (for $2.5 million), Dec. 2 (for $7.5 million)
|
| Stock symbol: | TSX Venture: APP
|
| Stock price: | C$0.10 at close Nov. 29
|
| Market capitalization: | C$19.18 million
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