Unsecured debentures due in three years, convert at C$0.35 per share
By Devika Patel
Knoxville, Tenn., Nov. 20 - Maya Gold & Silver Inc. said it raised C$1.5 million in the first tranche of a C$10 million private placement of unsecured convertible debentures. Subscriptions must be for a minimum amount of C$200,000.
The 8% debentures mature in three years.
At maturity, the debentures convert into common stock at C$0.35 per share. The conversion price is a 45.83% premium to the closing share price on Nov. 19 of C$0.24.
The debentures may also be converted into silver ingots produced from the Zgounder mine at a price per ounce equal to the spot market price of silver on the payment date minus 12.5% or C$18.00 per ounce.
North Square Blue Oak Ltd. is the agent.
Proceeds will be used to purchase underground mining equipment and chemicals to start underground production, for flotation cells aimed to reduce production costs and increase production and development of the Zgounder silver mine in Morocco.
Based in Montreal, Maya Gold & Silver mines for base and precious metals.
| Issuer: | Maya Gold & Silver Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$10 million
|
| Maturity: | Three years
|
| Coupon: | 8%
|
| Conversion price: | C$0.35
|
| Conversion premium: | 45.83%
|
| Warrants: | No
|
| Agent: | North Square Blue Oak Ltd.
|
| Settlement date: | Nov. 20 (for C$1.5 million)
|
| Stock symbol: | TSX Venture: MYA
|
| Stock price: | C$0.24 at close Nov. 19
|
| Market capitalization: | C$26.73 million
|
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