By Devika Patel
Knoxville, Tenn., Sept. 16 - Anaconda Mining Inc. said it took in C$1.29 million from the first tranche of a C$2.97 million private placement of 12% convertible debentures.
The company plans to sell up to 3,300 debenture units total, with a face value of C$1,000 per unit, at a subscription price of C$900 per unit.
The first tranche consisted of 1,436 units.
Interest is payable semi-annually until maturity and the debenture may be prepaid in whole or in part (including accrued interest) at any time without penalty or bonus.
The debentures are secured by a first charge over certain of the company's assets. The company has also established a debt reduction escrow account funded from gold sales from the company's Pine Cove gold project from which debt service or principal repayments will be made.
The debentures will be convertible into common shares at the holder's option at any time prior to maturity at a conversion price of C$0.75 until Sept. 15, 2010, at C$0.90 from Sept. 16, 2010 until Sept. 15, 2012 and at C$1.10 from Sept. 16 2012 until Sept. 15, 2013, the maturity date.
The company may accelerate conversion of the debentures if the closing price of the company's shares is equal to or exceeds 100% of the underlying conversion price for a period of 20 consecutive trading days during any conversion period.
Anaconda is a mineral resource company in Toronto.
| Issuer: | Anaconda Mining Inc.
|
| Issue: | Units of C$1,000 in 12% convertible debentures
|
| Amount: | C$2.97 million
|
| Units: | 3,300
|
| Price: | C$900
|
| Warrants: | No
|
| Settlement date: | Sept. 16 (for C$1,292,400)
|
| Stock symbol: | Toronto: ANX
|
| Stock price: | C$0.32 at close Sept. 16
|
|
|
| Debentures
|
| Maturity: | Sept. 15, 2013
|
| Coupon: | 12%
|
| Price: | 90
|
| Yield: | 12%
|
| Conversion price: | C$0.75 until Sept. 15, 2010, C$0.90 from Sept. 16, 2010 until Sept. 15, 2012, C$1.10 thereafter
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
