Company inks deal with Procon Mining & Tunnelling to fund acquisition
By Devika Patel
Knoxville, Tenn., Sept. 5 - Lincoln Mining Corp. said it has negotiated a C$4.6 million non-brokered private placement of stock and convertible debentures with Procon Mining & Tunnelling Ltd.
The company will sell 46 million common shares at C$0.05 per share in two tranches of 24 million shares and 22 million shares for C$2.3 million. The price per share is identical to the Sept. 4 closing share price.
In addition, the investor will buy a C$2.3 million three-year 6% convertible debenture, which is convertible into 23 million common shares at C$0.10 per share, a 100% premium to the Sept. 4 closing price.
Settlement of the final tranche is expected Nov. 9.
Proceeds will be used towards the purchase price for the company's planned acquisition of the Bell Mountain property in Churchill County, Nev., to advance the work programs on Lincoln's other mineral projects and for general working capital.
Based in Vancouver, B.C., Lincoln Mining is a gold and silver exploration and development company.
| Issuer: | Lincoln Mining Corp.
|
| Issue: | Common stock, convertible debenture
|
| Amount: | C$4.6 million
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Procon Mining & Tunnelling Ltd.
|
| Pricing date: | Sept. 5
|
| Settlement date: | Nov. 9
|
| Stock symbol: | TSX Venture: LMG
|
| Stock price: | C$0.05 at close Sept. 4
|
| Market capitalization: | C$4.87 million
|
|
|
| Shares
|
| Amount: | C$2.3 million
|
| Shares: | 46 million
|
| Price: | C$0.05
|
|
|
| Debenture
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| Amount: | C$2.3 million
|
| Maturity: | Three years
|
| Coupon: | 6%
|
| Conversion price: | C$0.10
|
| Conversion ratio: | Into 23 million shares
|
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