Company to sell convertible debentures and units to fund CanTung Mine
By Devika Patel
Knoxville, Tenn., Oct. 18 - North American Tungsten Corp. Ltd. said it arranged a private placement of 10% convertible debentures and units.
The $2.85 million in three-year debentures are convertible into common stock at C$0.45 per share, or 2,915 common shares per $1,000 of convertibles. The conversion price represents a 9.76% premium to the Oct. 15 closing share price of C$0.41 and is based on a pre-determined fixed exchange rate of C$0.98 per $1.00.
The company will sell 7 million units of one common share and two-sevenths of a warrant at C$0.38 apiece for C$2.66 million in a non-brokered offering. Each whole warrant is exercisable at C$1.00 for five years.
The strike price is a 143.9% premium to the Oct. 15 closing share price.
Proceeds will be used for the development of the CanTung Mine and general corporate purposes.
Based in Vancouver, B.C., North American Tungsten is a mining company focused on tungsten and related mineral properties.
| Issuer: | North American Tungsten Corp. Ltd.
|
| Issue: | Convertible debentures, units of one common share and two-sevenths of a warrant
|
| Pricing date: | Oct. 18
|
| Stock symbol: | TSX Venture: NTC
|
| Stock price: | C$0.41 at close Oct. 15
|
| Market capitalization: | C$82.72 million
|
|
|
| Convertibles
|
| Amount: | $2.85 million
|
| Maturity: | 36 months
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | C$0.45
|
| Conversion ratio: | 2,915 common shares per $1,000 of convertibles
|
| Conversion premium: | 9.76%
|
| Warrants: | No
|
|
|
| Units
|
| Amount: | C$2.66 million
|
| Units: | 7 million
|
| Price: | C$0.38
|
| Warrants: | Two-sevenths of a warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$1.00
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
