By Devika Patel
Knoxville, Tenn., July 7 - ECU Silver Mining Inc. said it has arranged a non-brokered private placement of C$4 million to C$5 million of 12% convertible unsecured debentures maturing on July 31, 2013.
The debentures will be convertible into common shares at the holder's option at any time prior to maturity at a conversion price of C$1.75. The conversion price is a 15% premium to the 20-day average closing price as of July 4.
Prior to maturity, the debentures will be redeemable, subject to a premium of 15%, 10% or 5% being paid if they are redeemed in the first, second or third year, respectively.
Settlement is expected July 19.
Proceeds will be used for working capital purposes.
ECU is a metals exploration and development company based in Toronto.
| Issuer: | ECU Silver Mining Inc.
|
| Issue: | Convertible debentures
|
| Amount: | C$4 million (minimum), C$5 million (maximum)
|
| Maturity: | July 31, 2013
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | C$1.75
|
| Call option: | At 115 in year one, 110 in year two, 105 in year three and par in year four onward
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | July 7
|
| Settlement date: | July 19
|
| Stock symbol: | Toronto: ECU
|
| Stock price: | C$1.80 at close July 7
|
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