Investor also lends company $50,000 through 2% note due Dec. 24, 2012
By Devika Patel
Knoxville, Tenn., June 27 - Lone Star Gold, Inc. amended the terms of a private placement of stock with Fairhills Capital Offshore Ltd. on June 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was announced May 1, priced May 14 and will now raise $15 million, lowered from $24 million. The company also obtained a $50,000 loan from Fairhills on June 25.
The shares will be sold at a purchase price equal to a 24.5% discount to the lowest trading price of the stock during the 10 consecutive trading days preceding the company's put notice.
Proceeds will be used for general working capital. In particular, the proceeds will fund Lone Star's exploration and drilling program at its La Candelaria gold-silver property and subsequent project activities.
The $50,000 loan is represented by a 2% secured note due Dec. 24, 2012. Proceeds will be used in connection with the company's mine tailings joint venture in Chihuahua, Mexico, and for general operating expenses.
Based in Albuquerque, Lone Star is a gold explorer.
| Issuer: | Lone Star Gold Inc.
|
| Issue: | Equity financing agreement, loan
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| Amount: | $15.05 million
|
| Warrants: | No
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| Investor: | Fairhills Capital Offshore Ltd.
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| Stock symbol: | OTCBB: LSTG
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| Stock price: | $0.19 at close June 22
|
| Market capitalization: | $16.75 million
|
|
|
| Equity sale
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| Amount: | $15 million
|
| Price: | 24.5% discount
|
| Announcement date: | May 1
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| Pricing date: | May 14
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| Revised: | June 25
|
|
|
| Note
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| Amount: | $50,000
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| Maturity: | Dec. 24, 2012
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| Coupon: | 2%
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| Settlement date: | June 25
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