By Devika Patel
Knoxville, Tenn., April 1 - Avnel Gold Mining Ltd. announced it has arranged a $3 million secured term loan with Manchester Securities Corp. It also said it will raise C$2.29 million from a private placement of shares.
The loan will mature on Dec. 31, 2009 and is secured by a security interest over all of the Avnel Gold Ltd. ordinary shares owned by the company and its interest in an intercompany loan agreement among Avnel Gold Mining, Avnel Gold and Societe d'Exploitation des Mines d'Or de Kalana, SA.
The company also will sell 6,542,857 ordinary shares at C$0.35 apiece to Elliott International, LP and Liverpool LP, along with two other existing shareholders.
Both deals are expected to settle on April 10.
The company also said it is extending the maturity date of the term loan notes it issued on June 30, 2005 by one year to Dec. 31, 2009 from Dec. 31, 2008.
Based in St. Peter Port, Guernsey, Avnel is a gold exploration company.
| Issuer: | Avnel Gold Mining Ltd.
|
| Issue: | Secured term loan, ordinary shares
|
| Warrants: | No
|
| Pricing date: | March 31
|
| Settlement date: | April 10
|
| Stock symbol: | Toronto: AVK
|
| Stock price: | C$0.365 at close March 31
|
|
|
| Loan
|
| Amount: | $3 million
|
| Maturity: | Dec. 31, 2009
|
| Investor: | Manchester Securities Corp.
|
|
|
| Shares
|
| Amount: | C$2,289,999.95
|
| Shares: | 6,542,857
|
| Price: | C$0.35
|
| Investors: | Elliott International, LP; Liverpool LP
|
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