Teddy Bear plans debenture issue

A private placement of convertible debentures will allow Teddy Bear Valley Mines (CDN) to raise a minimum of $6 million.

The junior reached an agreement-in-principle with brokerage firm Loewen, Ondaatje, McCutcheon (LOM) for the $6-million financing. LOM has the right to increase the offering by up to an additional $4 million.

Teddy Bear plans to use the proceeds to fund its share of costs at the Holloway gold project in Ontario and for working capital. Teddy Bear has a 15.35% interest in Holloway; the operator is Hemlo Gold Mines.