By Laura Lutz
Des Moines, June 4 - Jinshan Gold Mines Inc. announced plans for a private placement of up to C$20 million of note units and warrants.
The company intends to sell up to 20,000 units at C$1,000 per unit. Each unit will consist of C$1,000 principal amount of a three-year promissory note and 200 transferable warrants.
Haywood Securities Inc. will act as agent for 12,500 of the units.
Ivanhoe Mines will buy the other 7,500 units.
The notes will have an interest rate of 12%, payable quarterly.
Each warrant will be exercisable at C$2.50 for two years.
Expiry of the warrants may be accelerated if, at any time more than 18 months after settlement of the placement, the volume-weighted average price of the company's shares is at least C$4.30 for 20 consecutive trading days.
Settlement is expected on June 26.
Proceeds will be used for exploration, corporate development in China, working capital and general corporate purposes.
Jinshan is a mining company based in Vancouver, B.C.
| Issuer: | Jinshan Gold Mines Inc.
|
| Issue: | Units of C$1,000 promissory note and 200 transferable warrants
|
| Amount: | C$20 million
|
| Units: | 20,000
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | 200 per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$2.50
|
| Agent: | Haywood Securities Inc. (for 12,500 units)
|
| Investor: | Ivanhoe Mines (for 7,500 units)
|
| Pricing date: | June 4
|
| Settlement date: | June 26
|
| Stock symbol: | Toronto: JIN
|
| Stock price: | C$2.22 at close June 4
|
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