By Laura Lutz
Des Moines, April 23 - Vannessa Ventures Ltd. plans to conduct a private placement of an unsecured convertible note for C$3 million.
Auro Investments Pty. Ltd. will buy the 8% two-year note.
At any time, Auro will be able to convert the note into units of one share and one half-share warrant at C$0.41 per unit. Each whole warrant will be exercisable at C$0.45 for two years.
Vannessa may prepay the note at any time more than one year after issuance.
The deal will be non-brokered.
The note offering is in addition to a C$6.5 million non-brokered private placement of units that priced on April 18. Auro also agreed to subscribe for C$2 million in that deal.
The placement of units will include up to 18,571,429 units of one share and one half-share warrant at C$0.35 per unit. Each whole warrant will be exercisable at C$0.45 for two years.
Exploram Enterprises Ltd., a private company that already holds a controlling interest in Vannessa, will subscribe for C$1.5 million of the units.
Proceeds will be used to advance development of the company's Crucitas project in Costa Rica, to fund international arbitration and to establish a cash reserve as well as for general corporate expenses.
Vannessa is a mining company based in Calgary, Alta.
Convertible note
| Issuer: | Vannessa Ventures Ltd.
|
| Issue: | Unsecured convertible note convertible into units of one share and one half-share warrant
|
| Amount: | C$3 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | C$0.41
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.45
|
| Investor: | Auro Investments Pty. Ltd.
|
| Agent: | Non-brokered
|
| Pricing date: | April 23
|
| Stock symbol: | TSX Venture: VVV
|
| Stock price: | C$0.425 at close April 20
|
|
|
| Units
|
| Issuer: | Vannessa Ventures Ltd.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$6.5 million
|
| Units: | 18,571,429
|
| Price: | C$0.35
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.45
|
| Investor: | Exploram Enterprises Ltd. (for C$1.5 million); Auro Investments Pty. Ltd. (for C$2 million)
|
| Agent: | Non-brokered
|
| Pricing date: | April 18
|
| Stock symbol: | TSX Venture: VVV
|
| Stock price: | C$0.43 at close April 18
|
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