Great Western greenshoe exercised, ups convertibles to $90 million

By Tali David

Minneapolis, April 5 - Underwriters for Great Western Minerals Group Ltd.'s $80 million secured convertible bond offering exercised their over-allotment option in full for $10 million, according to a press release.

As previously reported, Great Western priced the five-year secured convertible bonds at par of $10,000 with a coupon of 8% and an initial conversion premium of 20%.

The bonds, which mature April 5, 2017, have an initial conversion price of C$0.66.

GMP Securities LP and ISM Capital LLP were the joint bookrunners, with Byron Capital Markets Ltd. as part of the syndicate.

Proceeds will be used to construct the mixed rare earth chloride and separation plants for Steenkampskraal mine and cracking plant, and further development and exploration, and for general working capital.

Based in Saskatoon, Sask., Great Western Minerals is an integrated rare earths processor.

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