Offerings will fund the Kapulo copper mine, debt repayment obligations
By Devika Patel
Knoxville, Tenn., Dec. 11 – Mawson West Ltd. said it will conduct a C$5 million private placement of stock with Galena Private Equity Resources Fund LP. It also negotiated $15 million of loans.
The company will sell 41,666,667 ordinary shares at C$0.12 each. The price per share is a 500% premium to C$0.02, the Dec. 10 closing share price.
Settlement is expected on Dec. 11.
As part of this financing, subsidiary Anvil Mining Congo SA has arranged a $10 million secured loan facility with Galena. The 12% loan is due Sept. 30, 2017 and may be prepaid.
As part of the $10 million loan facility, Galena received 75,757,576 warrants, which are each exercisable at C$0.15 until Sept. 30, 2017.
The facility may be used for general working capital purposes and must be drawn within 10 business days.
In addition, Mawson negotiated a $5 million 12% unsecured bridge loan with Galena, which matures on Feb. 28, 2015. The company may issue warrants with this loan.
Also, Galena may buy between C$8.64 million and C$21.6 million of additional ordinary shares at C$0.12 per share.
Proceeds from the placement will be used as working capital for the ramp-up of the Kapulo copper mine to positive cash flows and to manage debt repayment obligations.
Based in Perth, Western Australia, Mawson explores for copper and silver with a focus on the Democratic Republic of the Congo.
| Issuer: | Mawson West Ltd.
|
| Issue: | Ordinary stock, secured loan facility, unsecured bridge loan
|
| Amount: | C$5 million, $15 million
|
| Investor: | Galena Private Equity Resources Fund LP
|
| Pricing date: | Dec. 11
|
| Settlement date: | Dec. 11
|
| Stock symbol: | Toronto: MWE
|
| Stock price: | C$0.02 at close Dec. 10
|
| Market capitalization: | C$9.25 million
|
|
|
| Stock
|
| Amount: | C$5 million
|
| Shares: | 41,666,667
|
| Price: | C$0.12
|
| Warrants: | No
|
|
|
| Loan
|
| Amount: | $10 million
|
| Maturity: | Sept. 30, 2017
|
| Coupon: | 12%
|
| Call: | Yes
|
| Warrants: | 75,757,576
|
| Warrant expiration: | Sept. 30, 2017
|
| Warrant strike price: | C$0.15
|
|
|
| Bridge loan
|
| Amount: | $5 million
|
| Maturity: | Feb. 28, 2015
|
| Coupon: | 12%
|
| Warrants: | Perhaps
|
|
|
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