Deal sells two-year 10% convertible debentures that convert to units
By Devika Patel
Knoxville, Tenn., May 3 - Oroco Resource Corp. said Wednesday that it has completed a C$3.75 million private placement of 10% convertible debentures.
The debentures mature in two years and are convertible into units at C$0.25 per unit. Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$0.40 for two years.
The conversion price reflects a 7.41% discount to the May 2 closing share price of C$0.27. The warrant strike price is a 48.15% premium to that price.
A portion of the proceeds has been used to repay a loan from EXP T1 Ltd. The balance of the proceeds will be used to advance the company's Cerro Prieto Project in Mexico.
Vancouver, B.C.-based Oroco Resource explores for gold and silver.
| Issuer: | Oroco Resource Corp.
|
| Issue: | Convertible debentures
|
| Amount: | C$3.75 million
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Conversion price: | C$0.25
|
| Warrants: | One half-share warrant per unit upon conversion
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Settlement date: | May 2
|
| Stock symbol: | TSX Venture: OCO
|
| Stock price: | C$0.27 at close May 2
|
| Market capitalization: | C$16.94 million
|
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