By Devika Patel
Knoxville, Tenn., June 6 - Donner Metals Ltd. said it took in C$3.2 million from a private placement of debentures. The deal priced for C$3 million on May 28.
The debentures carry a 12% coupon and mature in two years; however the company may redeem all or part of the outstanding principal (and accrued interest) at any time.
The debentures are secured against all of the company's present and future-acquired assets, on a first-ranking priority basis.
For every C$10.00 invested, each investor was entitled to either a warrant for 14 additional common shares or seven common shares. A total of 1,435,000 bonus shares and 1.61 million bonus warrants were issued to the purchasers.
Each warrant will be exercisable at C$0.38 per share until June 5, 2010.
Proceeds will be used for exploration and general working capital.
Based in Vancouver, B.C., Donner is a mineral exploration company.
| Issuer: | Donner Metals Ltd.
|
| Issue: | Secured debentures
|
| Amount: | C$3.2 million
|
| Maturity: | Two years
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | 1.61 million
|
| Warrant expiration: | June 5, 2010
|
| Warrant strike price: | C$0.38
|
| Pricing date: | May 28
|
| Settlement date: | June 6
|
| Stock symbol: | TSX Venture: DON
|
| Stock price: | C$0.38 at close May 27
|
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