By Devika Patel
Knoxville, Tenn., May 29 - Trans-Siberian Gold plc said it plans to raise $25 million via a convertible loan.
UFG Asset Management has agreed to provide up to $3 million of the loan if the company can secure the remainder of the loan from other sources. Half of the loan is repayable on the earlier of the first anniversary of the commencement of gold production at Asacha and Sept. 30, 2011. The balance is due on the earlier of the second anniversary of first gold production and Sept. 30, 2012.
If the company raises equity during the term of the loan, UFG may convert any part of the loan into shares at the same price per share as that equity raising.
UFG may also convert any part of the loan into shares at a price equal to the volume-weighted average price of the shares over the 60 business days prior to the conversion.
UFG may receive warrants for additional shares.
Proceeds will be used to bring the Asacha mine into production.
Based in Toft, England, Trans-Siberian Gold is a gold mining company.
| Issuer: | Trans-Siberian Gold plc
|
| Issue: | Convertible loan
|
| Amount: | $25 million
|
| Maturity: | Sept. 30, 2011 (for 50%), Sept. 30, 2012 (for remaining 50%)
|
| Conversion price: | Variable
|
| Warrants: | Yes
|
| Agent: | Cenkos Securities plc
|
| Investor: | UFG Asset Management (for $3 million)
|
| Pricing date: | May 29
|
| Stock symbol: | London: TSG
|
| Stock price: | 27.5p at close May 29
|
| Market capitalization: | £24.2 million
|
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