Loan with Endeavor expected to fund capital expenditures at Tabakoto
By Devika Patel
Knoxville, Tenn., Aug. 7 - Avion Gold Corp. said it has negotiated a $20 million exchangeable debt financing with Endeavour Mining Corp.
The loan is due in six months and accrues interest at Libor plus 600 basis points. The debt may be exchanged for shares at $0.4323 per share, which is a 16.87% discount to the Aug. 6 closing share price of $0.52.
Proceeds will be used for capital expenditures at Avion's Tabakoto mine and general corporate purposes.
The company also said that it has entered into a definitive agreement with Endeavour under which Endeavour will acquire all of the company's common shares. Avion shareholders will receive 0.365 Endeavour ordinary shares for each Avion share held. Canadian residents may elect to receive preferred shares.
Avion is a gold explorer in Toronto.
| Issuer: | Avion Gold Corp.
|
| Issue: | Exchangeable loan
|
| Amount: | $20 million
|
| Maturity: | Six months
|
| Coupon: | Libor plus 600 bps
|
| Exchange price: | $0.4323
|
| Warrants: | No
|
| Investor: | Endeavour Mining Corp.
|
| Pricing date: | Aug. 7
|
| Stock symbol: | OTCBB: AVGCF
|
| Stock price: | $0.52 at close Aug. 6
|
| Market capitalization: | $242.44 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
