By Devika Patel
Knoxville, Tenn., June 10 - Rusoro Mining Ltd. announced an $80 million senior secured exchangeable loan.
The loan is exchangeable into common shares at C$1.25 per share.
The loan carries a 10% coupon which is payable semi-annually.
It has a two-year term and is secured by share pledges over Rusoro's principal assets including Choco 10.
The loan will be drawn down Tuesday and be made available in two tranches: $28 million will be available immediately for general corporate purposes, with the remaining $52 million made available once certain strategic milestones are met.
Peter Hambro Mining plc invested $20 million.
Proceeds will be used for regional consolidation opportunities approved by the lenders and for general corporate purposes
Based in Vancouver, B.C., Rusoro Mining, formerly Newton Ventures Inc., is a development-stage company engaged in exploring mineral properties.
| Issuer: | Rusoro Mining Ltd.
|
| Issue: | Senior secured exchangeable loan
|
| Amount: | $80 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Conversion price: | C$1.25
|
| Warrants: | No
|
| Investor: | Peter Hambro Mining plc
|
| Pricing date: | June 10
|
| Settlement date: | June 10 (for $28 million)
|
| Stock symbol: | TSX Venture: RML
|
| Stock price: | C$1.17 at close June 10
|
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