One-year loan funds gold ore inventory purchases and working capital
By Susanna Moon
Chicago, May 26 – Inca One Gold Corp. said it closed a $500,000 second tranche of a $1.5 million convertible loan with a group of lenders led by Promerita Financial Corp. The deal is expected to settle in three tranches of $600,000, $500,000 and $400,000, as announced on March 20.
As previously announced, the 15% loan matures in one year, and up to 40% of the principal may be converted into common shares at C$0.25 per share. The conversion price is equal to the March 19 closing share price. The loan may be prepaid.
Funding of the remaining tranche of $400,000 is at the option of Inca One and subject to closing conditions, according to a company press release.
Promerita was paid a 5% arrangement fee.
Proceeds will be used for mill feed inventory purchases at the company’s Chala One plant in Peru and general working capital purposes.
The Vancouver, B.C., company, formerly known as Inca One Resources Corp., is an ore processing company that owns a gold milling facility in Peru.
| Issuer: | Inca One Gold Corp.
|
| Issue: | Convertible loan
|
| Amount: | $1.5 million
|
| Maturity: | One year
|
| Coupon: | 15%
|
| Conversion price: | C$0.25
|
| Call: | Yes
|
| Warrants: | No
|
| Investor: | Promerita Financial Corp. (lead)
|
| Fees: | 5%
|
| Pricing date: | March 20
|
| Settlement dates: | April 27 (for $600,000), May 25 (for $500,000)
|
| Stock symbol: | TSX Venture: IO
|
| Stock price: | C$0.25 at close March 19
|
| Market capitalization: | C$16.44 million
|
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