Three-year deal with SpringTree Special comes with options
By Devika Patel
Knoxville, Tenn., Sept. 16 - Australian-American Mining Corp. NL said it arranged an up to A$3.65 million 18-month convertible loan with SpringTree Special Opportunity Fund, LP. It has already received A$250,000 and plans 17 additional tranches of A$60,000 each.
Each tranche may be increased to a maximum of A$200,000.
The loan accrues no interest and is accompanied by 8 million three-year options for ordinary shares, which are exercisable at 120% of the average of the volume-weighted average prices of the shares for the 20 business days immediately prior to settlement.
The company also will pay a facility fee of 8,050,123 shares to the investor.
Proceeds will be used for business expansion, including drilling and acquisitions.
"We are delighted to welcome Springtree as an investor in the company and thank them for their support of goals and objectives," the company's executive chairman Jim Malone said in a press release.
"This funding agreement allows the company to complete a fairly aggressive expansion and development process over the next 6-12 months whilst also potentially allowing less dilution than alternative methods of financing.
"We are also delighted as this represents our first major agreement with a North American-based institution, and we are hopeful of increasing interest in the company in this region, the world's largest investment market. We look forward to expanding the company substantially with this committed funding," Malone concluded.
Sydney, Australia-based Australian-American Mining is a uranium, gold and base metals explorer.
| Issuer: | Australian-American Mining Corp. NL
|
| Issue: | Convertible loan
|
| Amount: | Up to A$3.65 million
|
| Maturity: | 18 months
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Options: | 8 million
|
| Option expiration: | Three years
|
| Option strike price: | 120% of the average of the volume-weighted average prices of the shares for the 20 business days immediately prior to settlement
|
| Fees: | 8,050,123 shares
|
| Investor: | SpringTree Special Opportunity Fund, LP
|
| Pricing date: | Sept. 16
|
| Settlement date: | Sept. 16 (for A$250,000)
|
| Stock symbol: | Australia: MRO
|
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