Agreement has been reached by D’Or Val Mines with Banque Indosuez, Geneva, Switzerland, for the placing of a convertible bond issue in the amount of 35 million Swiss francs (about $30.5 millionC) with 20 Swiss financial institutions.
The bonds will have an 8-year term, carry an annual interest rate of 5 7/8 % and be convertible into common shares of the company at a premium to the prevailing market price for the five days prior to signing of the final underwriting agreements. The transaction is subject to regulatory approval.
The proceeds will be used to accelerate development of D’Or Val’s Beacon gold property near Val d’Or, Que., which went into production in April of this year.
In addition, the company plans to expand exploration activities at its other Quebec properties, in particular at the Beaufort project, situated near the Beacon property, and at La Fosse property in the Labrador Trough area north of Schefferville.
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