Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) announced it has closed the final tranche of its US$2 million debenture financing.
The second tranche raised gross proceeds of US$925,000.
The debentures issued under the second tranche bear interest at the rate of 14% per annum and mature on March 8, 2024. They may be converted into shares of the company at US$0.067 per share until July 8, 2023, and thereafter at US$0.078 per share.
READ: Lion Copper and Gold closes first tranche of convertible debenture financing for nearly US$1.1M
Lion also issued to the purchasers one detachable warrant for every US$0.06 (C$0.077) of principal amount of the debentures subscribed for, totaling 15,416,664 warrants in connection with the second tranche of the debenture financing.
Each warrant entitles the holder to acquire a common share at a price of US$0.06 (C$0.077) for a period of 20 months.
Proceeds from the financing will be used for general working capital, according to the company.
Four current directors of the company participated in the second tranche of debenture financing for the principal amount of US$500,000, Lion noted.
Separately, Lion completed the previously announced debt settlement by issuing 1,212,121 common shares of the company at a deemed price of $0.0825 per share in settlement of $100,000 owed to the creditor.
The common shares issued in connection with the debt settlement are subject to a four-month hold period expiring on November 6, 2022.
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