Company is selling two types of unit with five-year, C$0.10 warrants
By Devika Patel
Knoxville, Tenn., Oct. 2 - Oremex Silver Inc. said it settled the units portion of a C$1.5 million non-brokered private placement of units and debenture units, raising C$750,000. The deal priced Sept. 7.
The company sold 13,636,364 units consisting of one common share and one warrant at C$0.055 per unit in this tranche.
Oremex also plans to sell C$750,000 of debenture units in future tranches. The debenture units, priced at C$1,000 apiece, each consist of C$1,000 of convertible debentures and 10,000 warrants. The 16% debentures will mature in five years and are convertible into common shares at C$0.10 per share, an 11.11% premium to the Sept. 6 closing share price of C$0.09.
Each warrant is exercisable at C$0.10 for five years. The strike price is also an 11.11% premium to the Sept. 6 closing price.
Based in Toronto, Oremex explores for silver.
| Issuer: | Oremex Silver Inc.
|
| Issue: | Units of one common share and one warrant, debenture units of C$1,000 of convertible debentures and 10,000 warrants
|
| Amount: | C$1.5 million
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.10
|
| Agents: | Non-brokered
|
| Pricing date: | Sept. 7
|
| Stock symbol: | TSX Venture: OAG
|
| Stock price: | C$0.09 at close Sept. 6
|
| Market capitalization: | C$10 million
|
|
|
| Units
|
| Amount: | C$750,000
|
| Units: | 13,636,364
|
| Price: | C$0.055
|
| Warrants: | One warrant per unit
|
| Settlement date: | Oct. 2
|
|
|
| Debenture units
|
| Amount: | C$750,000
|
| Price: | C$1,000
|
| Maturity: | Five years
|
| Coupon: | 16%
|
| Conversion price: | C$0.10
|
| Warrants: | 10,000 warrants per unit
|
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