Loan will be repaid in 40 weekly installments of 458 ounces of gold
By Devika Patel
Knoxville, Tenn., March 17 - Aura Minerals Inc. said it negotiated a $22.5 million gold loan with Auramet International LLC.
The loan will be repaid in 40 weekly installments of 458 ounces of gold beginning on April 7, for a total of 18,320 ounces of gold. The loan may be prepaid with no penalties. The company has also hedged a further 10,000 ounces of gold with the investor at an average fixed price of C$1,373 per ounce, as well as 15,000 ounces of gold with a C$1,300 floor price and $1,423 ceiling price.
The loan is guaranteed by the company's interests in its Aranzazu, San Andres, Sao Francisco and Sao Vicente operating entities and is secured by a continuing security interest in all of the company's present and future personal property.
Auramet also received warrants for 4.5 million common shares. The warrants are each exercisable at C$0.36 for one year. The strike price is an 89.47% premium to the March 14 closing share price of C$0.19 and is also equal to a 100% premium to the 20-day volume weighted average price of the stock ending on March 16, the company noted in the press release.
Proceeds will be used to pay off the company's credit facility.
Aura Minerals is a gold and copper exploration company based in Vancouver, B.C.
| Issuer: | Aura Minerals Inc.
|
| Issue: | Gold loan
|
| Amount: | $22.5 million
|
| Coupon: | 18,320 ounces of gold, payable in 40 weekly installments of 458 ounces each, beginning April 7
|
| Warrants: | For 4.5 million shares
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| Warrant expiration: | One year
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| Warrant strike price: | C$0.36
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| Investor: | Auramet International LLC
|
| Settlement date: | March 17
|
| Stock symbol: | Toronto: ORA
|
| Stock price: | C$0.19 at close March 14
|
| Market capitalization: | C$48 million
|
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