By Devika Patel
Knoxville, Tenn., Sept. 10 - Mountain Lake Resources Inc. announced that it has arranged a C$2 million private placement of two-year limited recourse convertible notes.
The notes will bear interest at 7%, payable annually. They are convertible at the election of the company at any time after the first year into common shares of Etruscan Diamonds Ltd., a corporation partially owned by Mountain Lake, at a conversion price of C$2.00 per share.
Mountain Lake will deposit into escrow a total of 1,000,000 Etruscan Diamonds common shares as collateral security for the notes. In the event of default, the noteholders' sole recourse will be limited to the collateral security.
Proceeds will be used to finance Mountain Lake's 2007 and 2008 exploration and development programs and for general working capital purposes.
Based in Vancouver, B.C., Mountain Lake is an exploration-stage company engaged in the exploration and development of base and precious metals.
Issuer: | Mountain Lake Resources Inc.
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Issue: | Limited recourse convertible notes
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Amount: | C$2 million
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Maturity: | 2009
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Coupon: | 7%
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Conversion price: | C$2.00 per share of Etruscan Diamonds Ltd.
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Pricing date: | Sept. 10
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Stock symbol: | TSX Venture: MOA
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Stock price: | C$0.65 at close Sept. 7
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