Whitebox purchases C$10 million total of 11% 42-month convertibles
By Devika Patel
Knoxville, Tenn., July 20 - Yukon-Nevada Gold Corp. said it sold another C$4 million of 11% 42-month unsecured convertible debentures to Whitebox Advisors LLC in a private placement. Odeon Capital Group, LLC was the agent. The investor purchased C$6 million of the convertibles on the same terms on June 15 and may buy another C$2 million of debentures within four months.
The debentures will be convertible at a conversion price equal to the greater of C$0.15 and 95% of the market price.
Whitebox was also paid a 10% structuring fee in the form of 2,010,126 common shares, as well as 20,101,259 warrants, each exercisable at C$0.30 for three years. The strike price is identical to the June 14 closing share price.
Proceeds will be used for the development of Starvation Canyon mine, to expand production at the SSX/Steer mine and begin work on the clean-up of historic rock disposal areas. These funds will enable Yukon-Nevada to maintain its focus on and momentum in ramping up ore production from the Jerritt Canyon property. The company said in a press release that it expects this will be the final capital raise in this capital expenditure cycle and expects cash flows to cover future needs.
Yukon-Nevada is a Vancouver, B.C.-based gold exploration company.
| Issuer: | Landdrill International Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | C$10 million
|
| Maturity: | 42 months
|
| Coupon: | 11%
|
| Conversion price: | The greater of C$0.15 and 95% of the market price
|
| Warrants: | 20,101,259
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.30
|
| Agent: | Odeon Capital Group, LLC
|
| Investor: | Whitebox Advisors LLC
|
| Fees: | 10%
|
| Settlement dates: | June 15 (for C$6 million), July 20 (for C$4 million)
|
| Stock symbol: | Toronto: YNG
|
| Stock price: | C$0.30 at close June 14
|
| Market capitalization: | C$328.49 million
|
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