General Mining Properties Ltd. announces offering of interest bearing Gold Notes

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[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 12 /CNW/ - General Mining Properties Ltd. (TSX Venture\nExchange: GPL) (the "Corporation") is pleased to announce the terms of a\nproposed financing. The Corporation proposes to undertake a non-brokered\noffering of up to US$3,500,000 worth of interest bearing gold notes ("Gold\nNotes") on a best efforts basis (the "Offering"), at a subscription price of\nUS$6,250 per Gold Note.\n\n\nThe Gold Notes will bear interest up to the date of delivery at 10% per\nannum payable annually on the anniversary of issue. The Gold Notes will have a\nterm of 24 months from the date of issuance and there shall be no penalty to\nthe Corporation or additional interest for early payment or physical delivery\non the Gold Notes. Physical delivery will not occur before twelve (12) months\nfrom the date of issue of the Gold Notes, and therefore interest for at least\na full twelve (12) months will be paid.\n\n\nSubscribers for a Gold Note will also receive 12,500 warrants to purchase\ncommon shares of the Corporation at an exercise price of CDN$0.50 per share,\nsuch warrants to expire two (2) years from the date of closing of the\nOffering.\n\n\nUpon receiving a notice that the Corporation is ready to make physical\ndelivery, a holder of Gold Notes may elect either:\n\n\n(a) to receive one (1), ten (10) troy ounce gold bar (gold purity .995 or\n greater) together with a cash payment equal to the accrued interest\n (the Corporation may make settlement through other gold weights\n provided aggregate gold weight is ten (10) troy ounces); or\n\n(b) to receive a cash payment equal to the price realized by the\n Corporation upon sale of the aggregate of ten (10) troy ounces of\n gold less any applicable commissions and charges together with\n accrued interest on the Gold Note.\n\n\nThe net proceeds from the Offering will be used towards the Corporation's\nproposed acquisition of a 70% interest in the Yarnell past producing gold\nmining property located approximately 70 miles from Phoenix, as announced in\nthe Corporation's January 24, 2008 press release, and for general working\ncapital requirements.\n\n\nClosing of the Offering is targeted for May 30, 2009 or such other\nearlier or later date as the Corporation determines and the TSX Venture\nExchange allows. The Offering is subject to approval by the TSX V...

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