Business
Monument Closes $13.0 Million Financing
Monument Closes $13.0 Million Financing
About this update from Monument Mining Limited
[{"type":"text","content":"\nMonument Closes $13.0 Million Financing\n\n\n Aug. 11, 2010 (Filing Services Canada) -- Monument Mining Ltd. (MMY - TSX Venture, D7Q1 - FWB), \"Monument\" or the \"Company\" is pleased to announce that it has received TSX Venture Exchange acceptance of and closed the private placement of $8 million in convertible notes (the \"Notes\") and a $5 million forward sale of gold (the \"Forward Sale\").The Notes have a term of five years and one day from the date of the issuance and must be repaid by the Company at the end of the term in cash at 121.67% of the principal amount.  Any early repayment of the Notes will result in a pro-rata adjustment of this repayment amount.  The holders of the Notes (the \"Noteholders\") may, at any time, convert the Notes into units at a price of $0.40 per unit with each unit comprising one common share of the Company and one common share purchase warrant. Each whole share purchase warrant is exercisable at $0.50 per share, expiring five years from the date of issuance of the Notes.  The conversion price of the units and the exercise price of the warrants are subject to adjustment in accordance with anti-dilution provisions of the Notes and the warrants. In connection with the issuance of the Notes, the Company entered into gold option agreements with each of the Noteholders (the \"Option Agreements\") whereby the Noteholder has the option to acquire gold from the Company up to an amount equal to the balance of the Note outstanding at the price greater of:  (i) $1,000 per ounce; and (ii) the gold price in US dollars as set by the London PM Fix and converted to Canadian dollars at the noon rate of exchange published by the Bank of Canada on the maturity date of the Notes, less a 5% discount.  In addition, as an inducement to enter into the subscription agreement for the Notes, the Company granted Noteholders the option to purchase an aggregate of 5,714 ounces of gold at a price of $1,000 per ounce and 2,857 ounces of gold at a price of $1,250 per ounce at any time during the term of the Notes commencing 18 months after closing.The closing of the Forward Sale resulted in the advance of $5 million to Monument.  Repayment of the advance will be made in gold. The Forward Sale has a term of five years and one day.  Warrants for the purcha...