By Sheri Kasprzak
New York, Jan. 26 - Golden China Resources Corp. said it has priced a C$12 million private placement.
The offering includes up to 12,000 units at C$1,000 each.
The units are comprised of C$1,000 in principal of senior secured convertible debentures, 500 shares and 500 warrants.
The warrants are exercisable at C$0.42 each for three years.
The 11.5% debentures mature in two years and are convertible into common shares at C$0.35.
The notes may be prepaid any time after the first anniversary of closing at 102% of face value plus interest.
A syndicate of placement agents led by Haywood Securities Inc. and including Blackmont Capital Inc. has an over-allotment option for up to 3,000 additional units.
Proceeds will be used to meet the company's commitment under a business combination agreement with Michelago Ltd., including a loan to Michelago for US$9.2 million. The rest of the proceeds will be used for working capital and general corporate purposes.
Based in Toronto, Golden China is a precious metals exploration and development company.
| Issuer: | Golden China Resources Corp.
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| Issue: | Units of C$1,000 in senior secured convertible debentures, 500 common shares, 500 warrants
|
| Amount: | C$12 million (maximum)
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| Units: | 12,000 (maximum)
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| Greenshoe: | For 3,000 units
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| Price: | C$1,000
|
| Maturity: | Two years
|
| Coupon: | 11.5%
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| Price: | Par
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| Yield: | 11.5%
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| Conversion price: | C$0.35
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| Warrants: | For 500 shares per unit
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| Warrant expiration: | Three years
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| Warrant strike price: | C$0.42
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| Placement agents: | Haywood Securities Inc. (lead), Blackmont Capital Inc.
|
| Pricing date: | Jan. 26
|
| Stock symbol: | TSX Venture: AUC
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| Stock price: | C$0.29 at close Jan. 26
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