Deep-South Resources Inc. (CVE:DSM) (OTCMKTS:DSMTF) said that Teck Resources Limited has signed agreements to sell the convertible debenture it holds with Deep-South to third party investors.
The convertible debenture has a principal value of $389,117 and is convertible into common shares of Deep-South at a conversion price of $0.115 per common share and has a maturity date of August 30, 2021. The convertible debenture will continue to bear interest on the outstanding principal amount at a rate of LIBOR plus 2% per annum payable with the principal at maturity. On March 31, 2021, the accrued interest was valued at $60,962.
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Upon closing of the transaction, the purchaser of the convertible debenture will convert the debenture into 3,913,730 common shares of Deep-South.
In a statement, Pierre Leveille, president & CEO of Deep-South said: "We are pleased with this transaction. Our balance sheet is now debt-free and we are well funded to advance the development of the Haib Copper project throughout 2021.”
Following the sale of the convertible debenture and its conversion by the purchaser, Teck holds 22,579,608 common shares of Deep-South, representing approximately 15.7% of the issued and outstanding common shares of the company.
Contact the author at jon.hopkins@proactiveinvestors.com