Company also negotiates $1 million second-lien notes with warrants
New York, Aug. 28 – Americas Silver Corp. said it completed a C$2 million private placement of units and agreed terms on $1 million of secured second-lien notes.
In the unit placement, the company issued 11,027,555 units at C$0.18 each.
The units are made up of one share and half of a share purchase warrant. Whole warrants are exercisable for one share at C$0.25 for 36 months.
Of the total, 5,555,555 were sold on a non-brokered basis and 5,472,000 via agent Medalist Capital Ltd.
The secured notes have a 12-month term and pay interest at 12%. Cash interest payments will be made monthly starting in the sixth month with the remainder due at maturity.
Americas Silver may repay the notes at any time at par plus accrued interest.
The lender also received warrants on the same terms and with the same coverage ratio as in the units placement, adjusted for the U.S. dollar to Canadian dollar exchange rate.
Proceeds from the units and the notes will be used to complete the company’s Galena 3000 Level silver-lead development, to partially extract a Crown Pillar at Nuestra Senora, to complete the San Rafael pre-feasibility study and for general administrative and corporate purposes.
Americas Silver is a Toronto-based precious metals mining company that owns the Cosala Operations in Sinaloa, Mexico, and the Galena Mine complex in Idaho.
| Issuer: | Americas Silver Corp.
|
| Issue: | Units of stock and 0.5 warrants
|
| Amount: | C$2 million
|
| Units: | 11,027,555
|
| Price: | C$0.18
|
| Warrants: | For 0.5 of a share per unit
|
| Warrant expiration: | 36 months
|
| Warrant strike price: | C$0.25
|
| Agent: | Medalist Capital Ltd. (for 5,472,000 units), non-brokered (for 5,555,555 units)
|
| Announcement date: | Aug. 28
|
| Stock symbol: | TSX: SPM
|
| Stock price: | C$0.15 at close on Aug. 27
|
| Market capitalization: | C$50 million
|
|
|
| Issuer: | Americas Silver Corp.
|
| Issue: | Secured second-lien notes
|
| Amount: | $1 million
|
| Maturity: | 12 months
|
| Coupon: | 12%
|
| Warrants: | 50% coverage
|
| Warrant expiration: | 36 months
|
| Warrant strike price: | C$0.25
|
| Announcement date: | Aug. 28
|
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