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Canamex Closes Final Tranche of Debenture Offering for Gross Proceeds of $559,000
VANCOUVER, BC / ACCESSWIRE / December 28, 2016 / Canamex Resources Corp. (TSXV: CSQ) (OTCQX...
About this update from Canamex Gold Corp
[{"type":"text","content":"Canamex Closes Final Tranche of Debenture Offering for Gross Proceeds of $559,000VANCOUVER, BC / ACCESSWIRE / December 28, 2016 / Canamex Resources Corp. (TSXV: CSQ) (OTCQX: CNMXF) (FSE: CX6) (\"Canamex\" or the \"Company\"), is pleased to announce that the Company closed the second and final tranche of a non-brokered private placement of secured convertible debentures (\"Debentures\") for a principal amount of $559,000 (\"Debenture Offering\"). The Debentures mature on December 23, 2019 (\"Debenture Maturity Date\").\n\nThis news release follows the Company's news release of October 25, 2016, in which Canamex raised gross proceeds of $4,239,000 in the first tranche of the Debenture Offering. In both tranches of the Debenture Offering, Canamex raised total gross proceeds of $4,798,000.\n\nFrom now until the Debenture Maturity Date, the Debentures will be convertible into common shares of Canamex (\"Shares\") at the option of the holder at a conversion price of $0.16 per Share (the \"Conversion Price\"), being 6,250 shares per $1,000 principal amount of Debentures. If all of the Debentures in the final tranche of the Debenture Offering were converted, this would result in the issuance of a total of 3,493,750 Shares.\n\nInterest on the Debentures shall be paid annually in arrears, at an annual interest rate of 7%. The Company will have the option, in its sole discretion, to pay the interest in Shares of the Company, subject to acceptance by the TSX Venture Exchange (\"TSX-V\"). In the event Canamex opts to pay the interest in Shares instead of cash, the interest rate shall increase to 10% per annum in respect of such interest payment in Shares.\n\nIn the event that the Company has not entered into a definitive joint venture agreement in respect of the Bruner Gold Property (\"JV Agreement\") on or before the date that is six months after the closing date of the Debenture Offering, the interest rate on the Debentures will thereafter be increased by 1% and will be subsequently increased by an additional 1% immediately following the end of each six month period during the term of the Debentures if at such time the JV Agreement has not been entered into.\n\nIn addition, the holders of the Debentures in the final tranche received a total of 3,493,750 warrants (\"Debenture Warrants\"). The Debenture Warrants have a strike price of $0.20 ...