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Taylor hosts indicated and inferred resources of 2.5 million tonnes grading 7.66 grams gold per tonne. A conceptual study calls for the mining of 1,000 tonnes per day, with ore to be processed at the nearby (currently idle) Stock mill.
Underground development is expected to last 18 months and cost $25 million. Financing was to have been partly covered by way of a share swap with Bay plus the private placement of shares and secured debentures (T.N.M., Dec. 18-24/00).
St Andrew is now offering 13 million units at 15 apiece, similar in number to its initial offer. A unit still consists of one share plus a share purchase warrant that can be exercised at 20 within three years of the deal’s closing.
The company continues to offer separately $4 million worth of secured debentures carrying interest of 10%. The interest is payable in shares, and the debentures can be converted into units valued at 15 each. In this case, a unit consists of one share plus half a warrant, with a whole warrant exercisable at 20 within three years.
St Andrew is also attempting to issue 11.7 million shares and pay $800,000 in cash to certain creditors in lieu of $2.7 million in current debt. A portion of the proceeds from the private placements would be used to restructure other current debt and to replace existing secured debt facilities.
Griffiths McBurney & Partners is managing the equity and debenture financings on a best-efforts basis. Both deals are expected to close shortly, as is the share-for-debt proposal.
St Andrew has 27.2 million shares outstanding, which may rise to as much 52.3 million as a result of the financings. The combined value of the three deals is $8.7 million.
St Andrew holds some 129 sq. km along the Porcupine-Destor fault, which plays host to numerous gold projects in the Timmins region. Recent efforts have been focused in and around the Taylor, Stock and Hislop properties.
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