Upon achieving the reserve threshold, another $12.7 million would be required for mine development and the construction of a 540-ton-per-day mill on site. Ini tial gold output would be 30,000 oz per year, Vedron says.
R. Brant Securities is planning a best-efforts offering of the debentures. Priced at $1,000 per unit, each unit carries a 10% coupon payable semi-annually in Vedron common shares.
If successful, the deal will also see a restructuring of Vedron’s debt owing to Belmoral Mines (TSE). The debt will be fixed at $5 million of which Belmoral w ill receive $1 million from the first $5 million raised by Vedron. Belmoral will then be paid half of the excess of the offering over $5 million to a maximum of $5 million.
The units mature in five years and are redeemable, at the holders’ option, into 2 oz of gold from mine production and 200 treasury shares or 425 V edron shares valued at $2.35 per share.
For every share issued under the conversion clause, Belmoral has agreed to contribute one Vedron share to Vedron’s treasury. If all the units are converted, B elmoral will have paid back its entire holding of 6.8 million Vedron shares back to the company.
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