Greenstone financing raises $8.4 million

Latin American gold producer Greenstone Resources (TSE) has completed a 2-series convertible debenture offering valued at $8.4 million.

Each series has a 5-year term and may be converted into Greenstone common shares at any time. Greenstone may redeem either series after Dec. 27, 1997, provided the market price of the shares is greater than 150% of the conversion price.

The US$2.4-million Series I debentures pay interest at 8.25% and have a conversion price of US$1.35. The $5-million Series II debentures pay interest at 5% and have a conversion price of $1.65. Should all the debentures be converted, more than 4.8 million additional shares would be issued. Over the past 14 months, Greenstone has raised $38.6 million through a series of equity-related financings. As a result, it has acquired and/or developed three Latin American gold mines which are expected to produce 50,000 oz. gold in 1995. In addition, the company has been able to increase exploration efforts, thereby increasing its mineral resources to 3 million oz. Greenstone does not anticipate any new equity issues for the year and expects to generate funds through loan facilities secured by gold in process, cash flow from operations, and the exercising of outstanding warrants.