Note converts at C$0.112 per share; Pacific Road Resources is investor
By Devika Patel
Knoxville, Tenn., Dec. 4 - Mega Precious Metals Inc. said it negotiated a $40 million private placement of 0% convertible notes with Pacific Road Resources Funds.
The note converts to common stock at C$0.112 per share. The conversion price is a 1.82% premium to the Dec. 3 closing share price of C$0.11 and is also equal to the 20-day volume-weighted average closing price of the stock, the company said in a press release.
Settlement of the first $3 million tranche is expected Dec. 20.
Mega also said it plans to price a C$1.5 million best-efforts private placement of common shares and flow-through shares with lead agent Paradigm Capital Inc.
Proceeds will be used for technical studies required to advance the Monument Bay Project to feasibility and exploration and development on Mega's other projects.
Mega is a precious metals exploration company based in Thunder Bay, Ont.
| Issuer: | Mega Precious Metals Inc.
|
| Issue: | Convertible notes
|
| Amount: | $40 million
|
| Coupon: | 0%
|
| Conversion price: | C$0.112
|
| Conversion premium: | 1.82%
|
| Warrants: | No
|
| Investor: | Pacific Road Resources Funds
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 20 (for $3 million)
|
| Stock symbol: | TSX Venture: MGP
|
| Stock price: | C$0.11 at close Dec. 3
|
| Market capitalization: | C$13.91 billion
|
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