Business
Placing and Loan Note Agreeme
Placing and Loan Note Agreeme.
About this update from Mineral And Financial Investments Ltd
[{"type":"text","content":"\n RNS Number : 3184A Athol Gold Limited 31 January 2011 \n\n31 January 2011\n \n \nATHOL GOLD LIMITED (AIM: AHG)\n \n(\"AHG\" or the \"Company\")\n \nPlacing and Loan Note Agreement\nThe Board of Athol Gold, the gold and precious metals focused investment company, is pleased to announce, following further demand from institutional investors, that it has raised an additional £739,875, before expenses. Of the total amount raised, £589,875 is being raised by way of a placing of 71,069,277 new ordinary shares of 0.25p at a price of 0.83p pence per share (\"Placing Price\"), and £150,000 is being raised via the issuance of new convertible loan notes (the \"Loan Notes\"). The Loan Notes do not carry a coupon, are redeemable in December 2012 and are convertible at any time, at the discretion of the note holder, into new ordinary shares at 0.83p per share (\"Conversion Price\"). On full conversion of the Loan Notes, the note holder would receive 18,072,289 new ordinary shares of 0.25p in the Company. \nThe Placing and Conversion Prices represent a 35 per cent. premium to the Company's unadjusted* net asset value (\"NAV\") of 0.617p a share - as announced on 26 January 2011 (*unadjusted for the subsequent issuance of shares relating to performance fees).\nAs previously stated, Athol Gold's investment strategy is to invest in gold and precious metal companies quoted on stock exchanges in the UK, Canada and Australia. The new monies will be used to further exploit investment prospects that present themselves as the Company focuses on value opportunities.\nOn Admission, the placing shares will rank pari passu with the existing ordinary shares of 0.25p each (\"Ordinary Shares\") in the Company. Application has been made for admission of the Placing Shares to trading on AIM. Admission is expected to occur on 4 February 2011.\nIssuance of convertible loan notes\nBecause the Company has insufficient headroom to complete the fund raise and to pay the performance fee due to t1ps Investment Management (IoM) Limited (\"TIM\") for the use of the services of Tom Winnifrith as Athol's Chief Investment Officer, TIM has agreed that it will receive its fee in the form of new convertible loan notes in lieu of the issue of 32,901,200 new ordinary shares announced on 26 January 2011. As such, AHG has issued £329,012 wo...