Company also gets $5 million three-year credit line with CAT Financial
By Devika Patel
Knoxville, Tenn., July 12 - GoGold Resources Inc. said it will raise $35 million in a debt and equity financing with Red Kite Mine Finance Funds and $5 million in a credit line with CAT Financial.
In the $5 million equity sale, the shares will be priced at a 5% premium to the 20-day volume weighted average stock price preceding the closing date.
The senior secured loan of $30 million with Red Kite bears interest at Libor plus 650 basis points with the equal quarterly payments over a three year period beginning on Sept. 30, 2014.
Red Kite will also receive 2 million warrants, which are each exercisable at C$1.50 for two years. The strike price is a 48.51% premium to the July 11 closing share price of C$1.01.
The $5 million CAT credit line bears interest between 4.5% and 4.95% and is repayable over a three year term.
Proceeds will be used to lease equipment, move the company's Parral Tailings Project into production and explore other growth opportunities.
GoGold is a gold exploration company based in Halifax, N.S.
| Issuer: | GoGold Resources Inc.
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| Issue: | Shares, senior secured loan
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| Amount: | $35 million
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| Warrants: | 2 million
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| Warrant expiration: | Two years
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| Warrant strike price: | C$1.50
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| Investor: | Red Kite Mine Finance Funds
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| Pricing date: | July 12
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| Stock symbol: | Toronto: GGD
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| Stock price: | C$1.01 at close July 11
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| Market capitalization: | C$130.85 million
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| Shares
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| Price: | 5% premium to the 20-day volume weighted average stock price preceding the closing date
|
|
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| Loan
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| Amount: | $30 million
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| Coupon: | Libor plus 650 bps
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