By Devika Patel
Knoxville, Tenn., Feb. 8 - Aquiline Resources Inc. said it will conduct a C$17.5 million private placement of a convertible debenture with Silverstone Resources Corp.
The debenture must be converted into, at Silverstone's option, either common shares, at a conversion price of C$12.00 per share, or a contract granting Silverstone the right to purchase 12.5% of the life of mine payable silver from the Loma de La Plata zone.
Silverstone may elect to convert the note into shares at any time until the conversion deadline, which is 30 days after the earlier of 23 months from the date of issue and the completion of a feasibility study on the Loma de La Plata zone, Aquiline's decision to proceed with a mine and receipt of all necessary permits to proceed with construction of a mine.
The debenture carries a coupon of 150,000 warrants in lieu of interest, with each warrant exercisable at C$13.00 for six months after the conversion deadline.
Settlement is expected Friday.
Toronto-based Aquiline is a gold and silver exploration and development company.
| Issuer: | Aquiline Resources Inc.
|
| Issue: | Convertible debenture
|
| Amount: | C$17.5 million
|
| Maturity: | 30 days after the earlier of 23 months from the date of issue and the completion of a feasibility study on the Loma de La Plata zone, Aquiline's decision to proceed with a mine and receipt of all necessary permits to proceed with construction of a mine
|
| Coupon: | 0%
|
| Price: | Par
|
| Conversion price: | C$12.00
|
| Warrants: | 150,000 warrants
|
| Warrant expiration: | Six months after conversion deadline
|
| Warrant strike price: | C$13.00
|
| Investor: | Silverstone Resources Corp.
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 8
|
| Stock symbol: | Toronto: AQI
|
| Stock price: | C$10.69 at close Feb. 7
|
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