Proceeds repay C$12.4 million of debt and finance corporate purposes
By Devika Patel
Knoxville, Tenn., Feb. 27 – Jaguar Mining Inc. said it plans a C$20 million non-brokered private placement of senior secured convertible debentures.
The 12% debenture matures in three years. It converts to common shares at a conversion price of C$0.50, which is a 9.09% discount to C$0.55, the Feb. 26 closing share price, and is also a 13% premium to the 30-day volume-weighted average price of the shares, the company said in a press release. The conversion rate is equal to 2,500 shares per C$1,000 of debt.
The company may redeem the debenture after six months. The redemption price will be 108 in the first year, 104 in year two and par in year three.
Settlement is expected March 26.
Proceeds will be used to repay the company’s C$12.4 million credit facility with Renvest Mercantile Bancorp Inc. and for general corporate purposes.
Jaguar is a junior gold producer in Brazil with headquarters in Toronto.
| Issuer: | Jaguar Mining Inc.
|
| Issue: | Senior secured convertible debenture
|
| Amount: | C$20 million
|
| Maturity: | Three years
|
| Coupon: | 12%
|
| Conversion price: | C$0.50
|
| Conversion rate: | 2,500 shares per C$1,000 of debt
|
| Call: | After six months at 108 in the first year, 104 in year two and par in year three
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 26
|
| Stock symbol: | TSX Venture: JAG
|
| Stock price: | C$0.55 at close Feb. 26
|
| Market capitalization: | C$550,000
|
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