Deal with shareholder Origo to fund mining development in Mongolia
By Susanna Moon
Chicago, July 11 - Kincora Copper Ltd. arranged for Origo Partners plc to subscribe for up to C$2.5 million of an 8.7% three-year note convertible into units of one share and one warrant.
The note is convertible into units at any time after issue at a price of C$0.25 each. Each warrant is exercisable at C$0.45 until maturity.
The conversion price is a 78.57% premium to the company's last closing price of C$0.14 on April 14, 2011. The warrant strike price is a 221.43% premium to that price.
Kincora is an existing Origo portfolio company, according to a press release by Origo Partners.
The completion of the private placement requires approval of the Toronto Stock Exchange.
In connection with the placement, Kincora granted Origo preemptive rights to acquire more equity stake in the company. Origo is the largest shareholder of Kincora with a 29.28% stake.
Proceeds will be used for development of the company's mineral properties in Mongolia and for general working capital purposes.
Kincora, formerly Brazilian Diamonds Ltd., is a development-stage resource company engaged in the acquisition, exploration and development of kimberlite and alluvial diamond properties in Brazil. The company is based in Vancouver. Origo is a private equity investment company focused on Asian-linked growth opportunities.
| Issue: | Kincora Copper Ltd
|
| Issue: | Notes convertible into units of one share and one warrant
|
| Amount: | C$2.5 million
|
| Maturity: | Three years
|
| Coupon: | 8.7%
|
| Price: | Par
|
| Initial conversion premium: | 78.57%
|
| Conversion price: | C$0.25
|
| Warrants: | One per unit upon conversion
|
| Warrant strike price: | C$0.45
|
| Warrant expiration: | Until note maturity
|
| Pricing date: | July 11
|
| Stock ticker: | Canada: BZD
|
| Stock price: | C$0.14 last close on April 14, 2011
|
| Market capitalization: | C$1.11 million
|
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