Vancouver — After recently cancelling a planned private placement citing dilution concerns, Jinshan Gold Mines (JIN-T, JINFF-O) has closed a $20-million debt financing to raise funds for Chinese exploration.
The financing consisted of 20,000 units priced at $1,000 apiece, with each unit composed of one promissory note and 200 transferable warrants. Notes have a $1,000 par value and pay 12% interest per year, to be paid quarterly, maturing after three years.
The warrants will be exercisable at $2.50 per share for two years, but Jinshan can accelerate that expiry date after 18 months if its shares trade at or above a volume-weighted average price of $4.30 for 20 consecutive trading days.
Haywood Securities sold 12,500 of the units and pocketed 4% ($500,000) of the gross proceeds of its portion. Jinshan’s senior sister company Ivanhoe Mines (IVN-T, IVN-N) took down the remaining 7,500 units.
Jinshan cancelled a planned financing in early June on concerns it would be dilutive with its stock trading below $2.00.
The company’s Chang Shan Hao (CSH 217) open-pit gold mine is poised to begin commercial gold production this month at an initial rate of 117,000 oz. gold per year. Operations will be focused on proven and probable reserves of 66.7 million tonnes grading 0.75 gram gold per tonne in the Northeast zone of the open pit.
An engineering study, aimed at boosting production to 180,000 oz. annually, is under way. The study will look to incorporate the Southwest zone’s measured and indicated resource of about 32 million tonnes grading 0.86 gram gold into the mining plan.
Jinshan shares have recently traded at around $1.90.
Be the first to comment on "Jinshan closes offering"