Lender gets two-year warrants for 3 million shares at C$0.20 apiece
By Marisa Wong
Madison, Wis., Feb. 14 - EMC Metals Corp. said it has found an agent to place a $3 million loan for the company.
The loan is expected to have a maturity of 18 months. Interest is payable monthly at a rate of 7% per year.
The lender may convert a maximum of $2 million principal amount of the loan into 10 million shares of EMC common stock.
In connection with the loan, the company intends to issue 3 million warrants to the lender. Each warrant is exercisable into one share of EMC stock at an exercise price of C$0.20 per share for a period of 24 months from the closing date. The strike price represents a 33.33% premium to the Feb. 13 closing share price of C$0.15.
EMC will also pay a cash commission of $150,000 and issue 750,000 warrants to the agent. The agent's warrants will have the same strike price and expiration as the warrants issued to the lender.
The loan will be secured by an interest in the assets of subsidiary Springer Mining Co.
The loan will be used to fund the advancement of the company's metal and mineral properties and for general working capital purposes.
Closing of the loan is subject to the approval of the Toronto Stock Exchange.
EMC is a Sparks, Nev.-based mining and exploration company.
| Issuer: | EMC Metals Corp.
|
| Issue: | Loan
|
| Amount: | $3 million
|
| Maturity: | 18 months (expected)
|
| Coupon: | 7%
|
| Warrants: | For 3 million shares
|
| Warrant expiration: | 24 months
|
| Warrant strike price: | C$0.20
|
| Stock symbol: | TSX Venture: EMC.TO
|
| Stock price: | C$0.15 at close Feb. 13
|
| Market capitalization: | C$23.36 million
|
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