By Devika Patel
Knoxville, Tenn., Sept. 29 - Apex Minerals NL said it arranged a A$60.5 million private placement of 11.25% senior secured notes with Goldman Sachs JBWere Pty Ltd.
The notes mature on Sept. 29, 2011 but may be redeemed at any time after Sept. 29, 2009.
Goldman Sachs also will receive detachable warrants for 43.5 million ordinary shares, exercisable at A$0.335, subject to adjustment.
The deal also includes detachable gold upside participation notes, which entitle the holders to be paid quarterly cash coupons (which may be zero) calculated by a specified formula which allows the holder to participate in any increase in the average Australian dollar gold price in a period over a specified floor price.
The holders, as a group, are paid 30% of the amount by which the average Australian dollar gold price in a period exceeds a floor price, multiplied by a notional principal amount that varies over the life of the notes.
The notes are expected to mature on Aug. 7, 2012.
The floor price may not be less than A$900 per ounce.
Proceeds will be used for the Wiluna project, to bring the Wilsons and Youanmi projects online in accordance with the company's integrated mine strategy, for exploration and evaluation, and for pre-production capital expenditure and working capital.
Apex is a mineral exploration company based in West Perth, Australia.
| Issuer: | Apex Minerals NL
|
| Issue: | Senior secured notes
|
| Amount: | A$60.5 million
|
| Maturity: | Sept. 29, 2011
|
| Coupon: | 11.25%
|
| Price: | Par
|
| Yield: | 11.25%
|
| Warrants: | No
|
| Call: | After Sept. 29, 2009
|
| Investor: | Goldman Sachs JBWere Pty Ltd.
|
| Pricing date: | Sept. 29
|
| Stock symbol: | Australia: AXM
|
| Stock price: | A$0.415 at close Sept. 29
|
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