Agreement with Resource Capital Fund VI finances Kitsault Mine Project
By Devika Patel
Knoxville, Tenn., July 15 - Avanti Mining Inc. announced it received a $10 million secured bridge loan from Resource Capital Fund VI LP. It also said it settled a restructuring and extension of its $20 million bridge loan with CEF Holdings Ltd. and Resource Capital Fund IV. The deals were announced on July 4.
The loan accrues interest at a rate of 10%. It will convert into convertible debentures on Dec. 31 if Avanti has not completed a $175 million rights offering. The convertible debentures will be due on Dec. 31, 2014 with a conversion price of C$0.07 per share, which is identical to the July 3 closing share price.
The lenders also received 20 million warrants, which are each exercisable at C$0.08478 for three years. The strike price is a 21.11% premium to the July 3 closing share price.
The company paid a 5% extension fee on the $20 million bridge loan and a 5% establishment fee on the new $10 million bridge loan.
All interest and fees are payable in cash or shares at each lender's choosing.
The purpose of the loan is to provide the company with additional time to provide debt, equity and strategic partnership financing that will fund the development of the Kitsault Mine Project.
Vancouver, B.C.-based Avanti is focused on acquiring, exploring and developing mineral resource projects.
| Issuer: | Avanti Mining Inc.
|
| Issue: | Secured bridge loan
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| Amount: | $10 million
|
| Coupon: | 10%
|
| Conversion price: | C$0.07
|
| Warrants: | 20 million
|
| Warrant expiration: | Three years
|
| Warrant strike price: | C$0.08478
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| Investor: | Resource Capital Fund VI LP
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| Pricing date: | July 4
|
| Pricing date: | July 15
|
| Stock symbol: | TSX Venture: AVT
|
| Stock price: | C$0.07 at close July 3
|
| Market capitalization: | C$28.22 million
|
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