By Paul A. Harris
St. Louis, May 7 - First Metals Inc. has completed the placement of a C$20 million issue of 14% senior secured notes with warrants, the company said in a news release Monday.
The notes, which priced at 98.00, come with a five-year-and-one-day maturity.
Jennings Capital Inc. led the deal.
Each note contains a warrant to purchase 100 shares of common stock at an exercise price of C$1.35 per share.
Proceeds will be used to complete underground development at the Fabie Bay Copper Mine near Rouyn-Noranda, Quebec, as well as to refurbish the Horne Mill, and for general working capital purposes.
Of the proceeds, C$3 million was immediately released to the company. The balance will be held in escrow pending the achievement of certain milestones by the company, including the receipt of the mining license from the Province of Quebec and the completion of the custom milling agreement. Both are expected to be finalized this month.
First Metals is a development company currently focused on the Fabie Bay and Magusi River Copper, Zinc, Gold and Silver Projects, near Rouyn-Noranda, Quebec, acquired from Globex Mining Enterprises Inc. in 2006.
| Issuer: | First Metals Inc.
|
| Amount: | C$20 million
|
| Maturity: | Five years and one day
|
| Security description: | Senior secured notes with warrants
|
| Warrants: | Each note contains one warrant to purchase 100 common shares
|
| Warrant strike price: | C$1.35 per share
|
| Bookrunner: | Jennings Capital Inc.
|
| Coupon: | 14%
|
| Price: | 98.00
|
| Call protection: | Two years
|
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