By Sheri Kasprzak
New York, April 11 - Tiomin Resources Inc. said it reached an agreement with Jinchuan Group Ltd. to close a C$7,434,000 private placement.
Jinchuan agreed to buy 16.52 million units at C$0.45 each.
The units are comprised of one share and one half-share warrant. Each whole warrant is exercisable at C$0.55 for 15 months.
If Tiomin completes an equity offering before Dec. 31, 2006 at a price less than C$0.45 each, Jinchuan will receive another half-share warrant per unit purchased.
Once the deal closes, Jinchuan will hold 9.9% of Tiomin's outstanding stock.
Also, Jinchuan agreed to provide subsidiary Tiomin Kenya Ltd. with a $35 million convertible subordinated debt facility. The facility is convertible into stock at C$0.65 each. The full terms of the facility are still being determined.
The transactions will require the approval of the company's shareholders. The next shareholders' meeting is scheduled for June 14.
Proceeds will be used for working capital and for exploration on the company's Kwale project.
Toronto-based Tiomin is a mineral exploration company.
| Issuer: | Tiomin Resources Inc.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$7,434,000
|
| Units: | 16.52 million
|
| Price: | C$0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 15 months
|
| Warrant strike price: | C$0.55
|
| Investor: | Jinchuan Group Ltd.
|
| Announcement date: | April 11
|
| Stock symbol: | Toronto: TIO
|
| Stock price: | C$0.40 at close April 11
|
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