Issue of US$2m 10% p.a. Convertible Notes due 1...

About this update from Altyngold Plc

[{"type":"text","content":"\n \n \n Issue of US$2m 10% p.a. Convertible Notes due 1 \n May 2021\n \n \n\n \n Goldbridges Gbl Res\n \n \n\n \n \n \n GoldBridges Global Resources Plc\n \n \n (\"GoldBridges\" or the \"Company\")\n \n \n Issue of US$2m 10% p.a. Convertible Notes due 1 \n May 2021\n \n \n Summary:\n \n \n Three institutional investors have subscribed for US$2 million in \n convertible loan notes due 1 May 2021 (the “Notes”).\n \n \n \n Funds from the issue of the Notes, together with earlier raised funds, \n are sufficient for the Company to complete its 2016 underground \n developments capex plan;\n \n \n No underwriting fees have been incurred with this financing package;\n \n \n Visor Capital (UK) Ltd. acted as adviser.\n \n \n \n Convertible Note Issue:\n \n \n GoldBridges is pleased to announce that on 18 May 2016 the Company \n issued US$2m in unsecured convertible loan notes due 1 May 2021 to three \n institutional investors.\n \n \n The Notes carry a coupon of 10% per annum, payable semi-annually in \n arrears within 5 business days of 1 May and 1 November each year with \n the first interest record date being 1 November 2016. Unless the Notes \n are re-purchased and cancelled, redeemed or converted prior to the \n scheduled maturity date, they will be repaid on 1 May 2021 at their \n principal amount. The Notes can be converted into Ordinary Shares of the \n Company at a price of 2.15 pence per share any time prior to maturity \n upon demand by the Noteholder (subject to the receipt of necessary \n corporate and governmental approvals).\n \n \n The Notes constitute senior, unsubordinated, direct, unconditional and \n unsecured obligations of the Company and rank pari passu among \n themselves.\n \n \n Use of Proceeds:\n \n \n As already announced, GoldBridges is in the process of developing its \n underground gold mine at Sekisovskoye. In order to complete the \n underground mine development, to increase the processing plant capacity \n to a run rate of 1 million tonnes per year and to produce 100,000 ounces \n of gold annually, the Company estimated that it would require US$20-30m \n in external funding over the next three years, assuming the gold price \n is between US$900-US$1,100/oz. Any additional capital required to \n complete the underground development plans should be generated from \n operational cash flows. The funds ra...

More updates from Altyngold Plc