Deal conducted with RMB for $8 million and Credipresto for $2 million
By Devika Patel
Knoxville, Tenn., Sept. 22 – Goldgroup Mining Inc. said it completed a $10 million secured medium term loan facility with RMB Resources Inc. and Credipresto SAPI de CV Sofom ENR. RMB will invest $8 million, and Credipresto will invest $2 million.
The 15% loan is due on Sept. 18, 2017.
The investors also received 42-month warrants for 7.2 million shares. Of the warrants, 3.6 million are each exercisable at C$0.19 and 3.6 million are exercisable at C$0.23. The strike prices are a 5% discount and 15% premium to the Sept. 19 closing share price of C$0.20.
Proceeds will be used to repay all C$2.19 million of debt under the company’s current loan facility, for development work at the Cerro Prieto Project and for other working capital purposes.
The gold production and exploration company is based in Vancouver, B.C.
| Issuer: | Goldgroup Mining Inc.
|
| Issue: | Secured medium term loan facility
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| Amount: | $10 million
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| Maturity: | Sept. 18, 2017
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| Coupon: | 15%
|
| Warrants: | For 7.2 million shares
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| Warrant expiration: | 42 months
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| Warrant strike price: | C$0.19, C$0.23
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| Investors: | RMB Resources Inc. (for $8 million) and Credipresto SAPI de CV Sofom ENR (for $2 million)
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| Settlement date: | Sept. 22
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| Stock symbol: | Toronto: GGA
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| Stock price: | C$0.20 at close Sept. 19
|
| Market capitalization: | C$27.29 million
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