Conversion into stock-and-warrant units to be automatic upon approval
By Angela McDaniels
Tacoma, Wash., April - Kazax Minerals Inc. said it plans to complete a non-brokered private placement for C$2.5 million principal amount of three-year zero-coupon convertible debentures.
Once all necessary approvals from the Kazakh Ministry of Industry and New Technologies are received, the principal amount of the debentures will automatically be converted into units of the company.
The conversion price will be C$0.05 per unit if conversion occurs within the first year of issuance and C$0.10 per unit if conversion occurs within the following two years. In certain circumstances, the conversion price may be greater than C$0.05 or C$0.10, respectively, if the company has announced a positive change concerning its resources prior to conversion.
Each unit will be comprised of one common share and one-half of a three-year warrant, with each whole warrant exercisable for one common share at an exercise price of C$0.10. The exercise price is a 122% premium to the company's $0.045 closing share price on April 13.
If the company's closing share price is C$1.00 or more for a period of 10 consecutive trading days, the expiration of the warrants will be accelerated.
The proceeds will be used for general working capital purposes.
The Vancouver, B.C., company explores for iron ore.
| Issuer: | Kazax Minerals Inc.
|
| Issue: | Debentures convertible into units of one share and one-half warrant
|
| Amount: | C$2.5 million
|
| Tenor: | Three years
|
| Coupon: | 0%
|
| Conversion prices: | C$0.05 per unit if conversion occurs within first year of issuance and C$0.10 per unit otherwise
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Pricing date: | April 14
|
| Stock symbol: | TSX Venture: KZX
|
| Stock price: | C$0.045 at close April 11
|
| Market capitalization: | C$9.81 million
|
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