Sikaman Gold Resources (TSE) of Toronto says it has completed arrangements for a $600,000 private placement for a 12% convertible redeemable debenture But as the company has received additional commitments to purchase the debentures, it is seeking shareholder approval to enable it to increase the value of the placement to $2 million.
Each dollar of the debenture is convertible into common shares of Sikaman at 50 cents and is accompanied by a warrant to purchase one common share for 60 cents each.
The debentures are convertible and warrants can be exercised at any time from the date of issue to Dec. 31, 1992, and can be redeemed by the company upon 30 days’ notice. The debentures are subject to a 5% premium after March 31.
The debenture is secured by Sikaman’s 34% stake in the Goldenrae gold mine in Ghana where production commenced in October. The operation is expected to produce about 22,000 oz. gold this year at a cash operating cost of less than US$130 per oz.
Sikaman also owns 14% of the US$100-million Bogosu project in Ghana which is expected to produce 125,000 oz. in 1991 at a cash operating cost of US$157 per oz. Sikaman has the option to increase its stake in Bogosu to 27%.
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