Note converts at C$0.1122 per share; Pacific Road is the investor
By Devika Patel
Knoxville, Tenn., Dec. 31 - Mega Precious Metals Inc. said it raised $3.33 million in the first tranche of a $40 million private placement of 0% convertible notes with Pacific Road Resources Funds on Dec. 20. The deal priced on Dec. 4.
The note converts to common stock at C$0.1122 per share. The conversion price is a 2% 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.
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$0.1122
|
| Conversion premium: | 1.82%
|
| Call: | After six months
|
| Warrants: | No
|
| Investor: | Pacific Road Resources Funds
|
| Pricing date: | Dec. 4
|
| Settlement date: | Dec. 20 (for $3,330,398)
|
| Stock symbol: | TSX Venture: MGP
|
| Stock price: | C$0.11 at close Dec. 3
|
| Market capitalization: | C$11.04 million
|
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