By Devika Patel
Knoxville, Tenn., Aug. 29 - Yukon-Nevada Gold Corp. said it has arranged a $35 million private placement of 15% senior secured notes for its subsidiary, Queenstake Resources (USA) Ltd.
The 18-month notes will be sold in units, with each unit consisting of $1,000 in notes and warrants for 1,000 of Yukon-Nevada's common shares.
Each warrant will be exercisable at C$0.25 for three years.
At maturity, the notes will be bought back for 115% of the purchase price, which means they are being sold, essentially, at 87% of par.
Queenstake may redeem the notes at any time at 115%.
The notes are senior secured by all Queenstake's United States-based assets.
Proceeds will be used to complete a revised mine plan for the Jerritt Canyon Mine to resume operation of Queenstake's processing facilities and for general working capital.
Yukon-Nevada is a Vancouver, B.C.-based mineral exploration company. Queenstake is its private subsidiary.
| Issuer: | Queenstake Resources (USA) Ltd.
|
| Issue: | Senior secured notes
|
| Amount: | $35 million
|
| Maturity: | 18 months
|
| Coupon: | 15%
|
| Price: | 87
|
| Warrants: | For 35 million shares (of Yukon-Nevada Gold Corp.)
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.25
|
| Pricing date: | Aug. 29
|
| Stock symbol: | Toronto: YNG (Yukon-Nevada)
|
| Stock price: | C$0.23 at close Aug. 28
|
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