Trivalence eyes another $1.1 million

Having recently completed a private placement of a non-arm’s-length loan of $1.1 million, with proceeds earmarked for African projects, Trivalence Mining (TMI-V) has arranged for similar private placement worth another $1.1 million.

The new loan bears interest at an annual rate of 11% per annum, and will be secured by a 2001 Series A no. 2 debenture. The loan will be repayable in full on October 1, 2003, unless extended by the lender.

The debenture provides for conversion of the principal amount into Trivalence units comprising one share and a share purchase warrant. The conversion price is 50 per unit until Oct. 1, 2003.

If the loan repayment date is extended, the conversion price rises to 60 per unit until Oct. 1, 2004. The conversion price increases by a dime each subsequent year the loan is extended through to Oct. 1, 2006.

Each warrant allows the holder to buy one Trivalence share at a price equal to the conversion price in effect at the time the debenture is converted. The warrants are exercisable until the due date of the loan, or until two years from the date of issue, whichever comes first.

The loan is subject to regulatory and both lender and Trivalence board approval.

The loan is also be subject to Trivalence amending and restating the four previous debentures issued to the lender so that they are substantially the same form as the recent 2001 Series A no. 1 debenture, except as to the principal amounts secured, the due dates for payment, extension dates and conversion terms.

The latest deal is also subject to the lender extending the repayment dates under each of the prior debentures to Oct. 1, 2002.

Trivalence owns an 85% stake in the Aredor diamond mine in Guinea, West Africa, where it is exploring for kimberlite with partner Rio Tinto (RTP-N). The London-based major can earn up to a 58% interest in Aredor.

Trivalence also owns the Palmietgat kimberlite diamond mine in South Africa and holds a 3,700-sq.-km kimberlite exploration concession in Botswana.