Deal sells 100 million units and senior secured note due June 30, 2020
By Devika Patel
Knoxville, Tenn., May 8 – Luna Gold Corp. plans a C$10 million non-brokered private placement of units and a C$20 million placement of senior secured notes with Pacific Road Resources Fund II, according to a press release. The company also may raise another C$15 million in an equity placement with existing investors.
The company will sell 100 million units of one common share and one warrant at C$0.10 per unit.
Each unit warrant is exercisable at C$0.125 for five years. The strike price is a 30.56% discount to the May 7 closing share price of C$0.18.
The company will also sell a C$20 million 10% senior secured note due June 30, 2020 to the investor, which will be accompanied by 200 million five-year warrants.
Each note warrant is exercisable at C$0.10, a 44.44% discount to the May 7 closing share price.
Settlement of both deals is expected June 30.
Proceeds will be used to repay the company’s debt facility with Societe Generale and Mizuho Corporate Bank, for infill drilling, to advance the current mine plan, prepare engineering studies and submit permits at Luna's Aurizona Project in Brazil and for general working capital and corporate purposes.
In connection with the financings, Sandstorm Gold Ltd. and Luna have agreed to restructure Luna’s gold stream and credit facilities with Sandstorm. The offerings are conditional upon the restructuring.
Vancouver, B.C.-based Luna is a gold exploration and development company focused on projects in Brazil and Nevada.
| Issuer: | Luna Gold Corp.
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| Issue: | Units of one common share and one warrant
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| Amount: | C$30 million
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| Warrant expiration: | Five years
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| Agents: | Non-brokered
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| Investor: | Pacific Road Resources Fund II
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| Pricing date: | May 8
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| Settlement date: | June 30
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| Stock symbol: | Toronto: LGC
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| Stock price: | C$0.18 at close May 7
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| Market capitalization: | C$23.34 million
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| Units
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| Amount: | C$10 million
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| Units: | 100 million
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| Price: | C$0.10
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| Warrants: | One warrant per unit
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| Warrant strike price: | C$0.125
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| Note
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| Amount: | C$20 million
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| Maturity: | June 30, 2020
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| Coupon: | 10%
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| Warrants: | 200 million
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| Warrant strike price: | C$0.10
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