By Devika Patel
Knoxville, Tenn., Oct. 3 - Avanti Mining Inc. said it arranged a C$20 million bridge loan with Resource Capital Fund IV LP.
The loan carries a 15% coupon.
If not repaid by July 15, 2009, the loan will automatically become a convertible debenture.
Upon closing, the company will issue 3 million shares as facility fees. An additional 3 million shares will be issued if the facility is not repaid in 180 days.
Avanti may prepay the loan in whole or in part at any time without penalty.
Proceeds will be used for Avanti's previously announced acquisition of a 100% interest in the mineral tenures comprising the former Kitsault molybdenum mine and surrounding mineral tenures, located in northern British Columbia, to complete a feasibility study and for general corporate purposes.
Based in Vancouver, B.C., Avanti is a newly formed company focused on acquiring, exploring and developing mineral resource projects.
| Issuer: | Avanti Mining Inc.
|
| Issue: | Bridge loan, plus 3 million shares
|
| Amount: | C$20 million
|
| Coupon: | 15%
|
| Price: | Par
|
| Yield: | 15%
|
| Warrants: | No
|
| Investor: | Resource Capital Fund IV LP
|
| Pricing date: | Oct. 3
|
| Stock symbol: | CNQ: AVT
|
| Stock price: | C$0.16 at close on Oct. 2
|
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