By Sheri Kasprzak
New York, Jan. 12 - Chief Consolidated Mining Co. said it has received a definitive agreement with Dimeling Schreiber & Park Fund II for a $2.5 million private placement of convertible debentures.
The 8% debentures are convertible into common shares at $0.25 each. The debentures automatically convert into common shares once the company's shareholders approve the debentures.
If the shareholders do not approve the transaction, the debentures will automatically become payable.
Proceeds from the offering have been placed in escrow pending the approval of the company's unsecured creditors of settlements representing more than half of the total amount owed.
Some of the proceeds will be used for the company's current exploratory drilling program.
Based in Eureka, Utah, Chief Consolidated is a mineral exploration company.
| Issuer: | Chief Consolidated Mining Co.
|
| Issue: | Convertible debentures
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| Amount: | $2.5 million
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| Coupon: | 8%
|
| Price: | Par
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| Yield: | 8%
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| Conversion price: | $0.25
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| Call: | Automatically convertible once shareholders approve debentures
|
| Warrants: | No
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| Investor: | Dimeling Schreiber & Park Fund II
|
| Settlement date: | Jan. 9
|
| Stock symbol: | Pink Sheets: CFCM
|
| Stock price: | $0.40 at close Jan. 9
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