Company sells 4,000 series B preferred units at $1,000 apiece in deal
By Devika Patel
Knoxville, Tenn., July 25 – Mines Management Inc. said it plans a $4 million registered direct offering of units. Roth Capital Partners is the agent.
The company will sell 4,000 units of one 6% series B convertible preferred share and a warrant for about 636 common shares at $1,000 per unit.
The warrants are each exercisable at $1.0816 for 52 months. The strike price is a 9.25% premium to the July 24 closing share price of $0.99.
The preferreds are each convertible into about 1,271 common shares at $0.7866 per share, which is a 20.55% discount to the July 24 closing price.
Settlement is expected July 30.
Proceeds will be used to advance the permitting process for the Montanore Project and prepare for the delineation drilling program and for general corporate purposes.
Based in Spokane, Wash., Mines Management acquires, explores and develops mineral properties, primarily those containing silver and associated base and precious metals.
| Issuer: | Mines Management Inc.
|
| Issue: | Units of one series B convertible preferred share and a warrant for about 636 common shares
|
| Amount: | $4 million
|
| Units: | 4,000
|
| Price: | $1,000
|
| Dividends: | 6%
|
| Conversion ratio: | Into about 1,271 shares (per preferred)
|
| Conversion price: | $0.7866
|
| Warrants: | One warrant for about 636 shares per unit
|
| Warrant expiration: | 52 months
|
| Warrant strike price: | $1.0816
|
| Agent: | Roth Capital Partners
|
| Pricing date: | July 25
|
| Settlement date: | July 30
|
| Stock symbol: | NYSE: MGN
|
| Stock price: | $0.99 at close July 24
|
| Market capitalization: | $27.12 million
|
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