Deal with Resource Income funds operations, convertible debt repayment
By Devika Patel
Knoxville, Tenn., Jan. 5 - Alexis Minerals Corp. said it completed a C$10 million financing with Resource Income Fund, LP.
The financing is comprised of a bridge loan that matures on Aug. 31, 2012 and bears interest at 15%.
The investor also received 4 million warrants, which are exercisable at C$0.047. The strike price is a 6% discount to the Jan. 4 closing share price of C$0.05 and is also a 5% premium to the 10-day volume weighted average price of the stock.
Resource Income Fund also was paid an upfront fee of 3%.
Proceeds will fund the company's operations until it can arrange long-term financing and will be used to repay a C$2.1 million convertible debenture.
"The closing of the debt financing for the Snow Lake Project will be an important milestone and we anticipate it will be finalized within the next few months," president and chief executive officer Francois Perron said in a press release. "During this time, the Snow Lake project team will continue to prepare and further refine our plans.
"The company decided a debt financing was preferred at this time [so as not to] further dilute our shareholders, however this type of financing is taking longer to complete than originally anticipated. The bridge loan will help the company get through the upcoming months until the debt financing is in place," Perron said.
Toronto-based Alexis is a mineral exploration company focused on gold and base metals.
| Issuer: | Alexis Minerals Corp.
|
| Issue: | Bridge loan
|
| Amount: | C$10 million
|
| Maturity: | Aug. 31, 2012
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | 4 million
|
| Warrant strike price: | C$0.047
|
| Investor: | Resource Income Fund, LP
|
| Fees: | 3%
|
| Settlement date: | Jan. 5
|
| Stock symbol: | Toronto: AMC
|
| Stock price: | C$0.05 at close Jan. 5
|
| Market capitalization: | C$29.68 million
|
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