Company offers debentures due June 2016 to Sentient Executive GP IV
By Devika Patel
Knoxville, Tenn., April 16 - Marengo Mining Ltd. said it plans an $18.8 million non-brokered private placement of 9% unsecured convertible debentures with Sentient Executive GP IV, Ltd.
The three-year debentures convert to common stock at a conversion price of C$0.14 per share. The conversion price is a 16.67% premium to C$0.12, the April 15 closing share price.
Settlement of the initial $12 million tranche is expected April 24.
Proceeds will be used for the development of the Yandera Project, including completion of a feasibility study and finalizing an engineering, procurement and construction contract, completion of a deep drilling campaign and general corporate purposes.
Marengo is a mining company based in West Perth, Western Australia.
| Issuer: | Marengo Mining Ltd.
|
| Issue: | Unsecured convertible debenture
|
| Amount: | $18.8 million
|
| Maturity: | June 30, 2016
|
| Coupon: | 9%
|
| Conversion price: | C$0.14
|
| Conversion premium: | 16.67%
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Sentient Executive GP IV, Ltd.
|
| Pricing date: | April 16
|
| Settlement date: | April 24 (for $12 million)
|
| Stock symbol: | Toronto: MRN
|
| Stock price: | C$0.12 at close April 15
|
| Market capitalization: | C$136.54 million
|
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