By Devika Patel
Knoxville, Tenn., Oct. 31 - Avanti Mining Inc. announced it secured a $40 million convertible preconstruction loan from Resource Capital Fund VI LP. The loan will be completed in multiple tranches, with the first $10 million tranche to be advanced upon receipt of shareholder approval and the remaining $30 million to be advanced in three tranches of $10 million each.
The loan accrues interest at a rate of 8%. It will convert into a convertible loan on June 30, 2014 if Avanti has not completed a rights offering of at least $175 million. The convertible loan will be due on Dec. 31, 2014 and is convertible into common stock at C$0.055 per share, which is a 10% premium to the Oct. 30 closing share price of C$0.05.
Proceeds will provide working capital to begin preconstruction activities at the Kitsault project.
Vancouver, B.C.-based Avanti is focused on acquiring, exploring and developing mineral resource projects.
| Issuer: | Avanti Mining Inc.
|
| Issue: | Convertible preconstruction loan
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| Amount: | $40 million
|
| Maturity: | Dec. 31, 2014
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| Coupon: | 8%
|
| Conversion price: | C$0.055
|
| Warrants: | No
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| Investor: | Resource Capital Fund VI LP
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| Pricing date: | Oct. 31
|
| Stock symbol: | TSX Venture: AVT
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| Stock price: | C$0.05 at close Oct. 30
|
| Market capitalization: | C$19.81 million
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