By Sheri Kasprzak
New York, Dec. 22 - Olympus Pacific Minerals Inc. said it has raised $2 million in a convertible note offering on behalf of subsidiary Bong Mieu Gold Mining Co., Ltd.
The non-revolving convertible debt facility was funded by Macquarie Bank Ltd.
The facility matures on June 30, 2007 and bears interest at Libor plus 275 basis points. The conversion price could not be determined by press time Thursday.
The maturity of the notes may be extended to June 30, 2008.
The investor also received warrants for 5.4 million shares, exercisable at a 30% premium to the 20-day trading volume weighted average price. The warrants expire on June 30, 2007.
If the maturity of the notes is extended, the warrants will become exercisable at a 35% premium to the 20-day trading volume weighted average price.
Proceeds will be used for rehabilitation of Bond Mieru's underground area and the completion of scoping studies to support mining and processing of ore from a higher-grade underground mine.
Toronto-based Olympus Pacific is a mineral exploration company.
| Issuer: | Olympus Pacific Minerals Inc. (for Bong Mieu Gold Mining Co., Ltd.)
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| Issue: | Convertible notes
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| Amount: | $2 million
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| Maturity: | June 30, 2007
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| Coupon: | Libor plus 275 basis points
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| Warrants: | For 5.4 million shares
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| Warrant expiration: | June 30, 2007
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| Warrant strike price: | Equal to a 30% premium to the 20-day trading volume weighted average price
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| Investor: | Macquarie Bank Ltd.
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| Settlement date: | Dec. 22
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| Stock price: | $0.294 at close Dec. 22
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