$10 million of larger debt financings also arranged through Renvest
By Devika Patel
Knoxville, Tenn., Dec. 16 - Tamerlane Ventures Inc. said it settled a $5 million senior secured bridge loan and a $5 million standby facility arranged by Renvest Mercantile Bancorp Inc. through its Global Resource Fund. A portion of the loans, specifically $1.25 million of each, will be in the form of convertible debentures.
The $2.5 million of convertible debentures may be converted into common shares at C$0.40 per share, a 77.78% premium to the Dec. 15 closing share price of C$0.225.
The company may force conversion if its shares trade at C$0.90 or higher for 30 consecutive days on a volume-weighted average basis.
Tamerlane will pay an upfront fee to the lenders of 500,000 shares. It will pay an additional 500,000 shares if it draws on the facility.
The bridge loan will be used for definitive engineering on the Pine Point project, cash deposits on long lead capital equipment orders and other general corporate working capital requirements. If drawn down, the standby facility will finance acquisitions or equipment that could bring the property into production ahead of schedule.
Tamerlane is a mining company based in Blaine, Wash.
| Issuer: | Tamerlane Ventures Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $2.5 million
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$0.40
|
| Conversion premium: | 77.78%
|
| Call: | May force conversion if the company's common shares trade at or above C$0.90 over 30 consecutive days on a volume-weighted average basis
|
| Warrants: | No
|
| Agent: | Renvest Mercantile Bancorp Inc.
|
| Fees: | 1 million shares
|
| Pricing date: | Dec. 16
|
| Stock symbol: | TSX Venture: TAM
|
| Stock price: | C$0.23 at close Dec. 16
|
| Market capitalization: | C$14.99 million
|
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