Investor Fabulosa Mines also gets 1,969,999 shares, 2,725,000 warrants
By Devika Patel
Knoxville, Tenn., May 17 - Orvana Minerals Corp. said it negotiated a $15 million 8% six-month secured convertible bridge loan with Fabulosa Mines Ltd.
The loan may be converted into common stock at maturity based on a share price that is the volume-weighted average trading price for the five trading days preceding the maturity date, less the maximum allowable discount.
Fabulosa also received 1,969,999 common shares and five-year warrants for 2,725,000 shares, with an exercise price equal to the volume-weighted average price of the shares for the five trading days preceding the date on which the warrants are issued.
Fabulosa has also agreed to amend its pre-emptive rights to acquire Orvana shares. The amendments will facilitate Orvana's ability to conduct public equity financings.
"As Orvana continues to execute its strategy of growth and diversification, including the development of the EI Valle-Boinas/Carles Mine in Spain and the Copperwood Project in Michigan, ready access to financing on acceptable terms will be increasingly important. This $15 million bridge loan will provide the corporation with significant short-term flexibility. In addition, these amendments to Fabulosa's pre-emptive rights will provide longer term flexibility in accessing the capital markets to raise equity," chief executive officer Roland Horst said in a press release.
The gold exploration company is based in Toronto.
| Issuer: | Orvana Minerals Corp.
|
| Issue: | Secured convertible bridge loan, 1,969,999 common shares
|
| Amount: | $15 million
|
| Maturity: | Six months
|
| Coupon: | 8%
|
| Warrants: | For 2,725,000 shares
|
| Warrant expiration: | Five years
|
| Investor: | Fabulosa Mines Ltd.
|
| Pricing date: | May 17
|
| Stock symbol: | Toronto: ORV
|
| Stock price: | C$2.68 at close May 16
|
| Market capitalization: | C$278.65 million
|
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