Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) has announced a non-brokered private placement on unsecured convertible debentures for gross proceeds of up to US$1.3 million for general working capital.
The company said that the debentures would bear interest at the rate of 14% per annum and would mature on the date that is 20 months from issuance.
The principal amount of the debentures may be converted into common shares of the company at US$0.05344 per share, at any time, before 10 months from the closing date of the offering, and US$0.075 per share at any time, after 10 months from the closing date and prior to the maturity date, Lion Copper and Gold said.
READ: Lion Copper and Gold reaches agreement for stage 2 work with Rio Tinto venture
The holder will have the option to elect to be repaid in kind at any time prior to maturity of the debentures by way of shares of Falcon Butte Minerals Corp, or its successor, at the rate of US$0.28 per Falcon Butte share, provided that any debenture held by an insider of the company requires prior stock exchange approval before being repaid in kind.
In connection with the debentures, the company said it will issue up to 24,327,480 common share purchase warrants to the purchasers.
Each warrant will entitle the holder to acquire a common share of the company at a price of US$0.07125 for a period of 20 months from the closing date, Lion Copper and Gold said.
Finder’s fees in cash, securities, or a combination of both may be paid, the company added.
Lion Copper and Gold is a Canada-based company advancing its flagship copper assets in Mason Valley, Nevada.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie