Business
Vane Raises GBP 750,000
Vane Raises GBP 750,000.
About this update from Zephyr Energy Plc
[{"type":"text","content":"\n Vane Minerals PLC\n05 September 2006\n\n\n\n5 September 2006\n\n\n\n\n\n\n\n VANE Minerals Plc (AIM: VML)\n\n £750,000 Raised By Way Of A Convertible Loan Note\n\n\n\nVane Minerals Plc ('VANE' or 'the Company') is pleased to announce that it has\nraised £750,000 through a convertible loan note agreement with City Natural\nResources High Yield Trust Plc and Geiger Counter Ltd, who have loaned £450,000\nand £300,000 respectively.\n\n\n\nThe funds raised will be used to primarily accelerate the exploration and\ndevelopment programme for the Company's portfolio of uranium properties in\nNorthern Arizona and South-eastern Utah and in addition to finance the\nconstruction of a mill at the Company's producing Diablito gold-silver mine, in\nNayarit State, Mexico. This will be of great benefit to VANE, as in addition to\neliminating scheduling bottle necks at the custom mill, this facility will\ngreatly reduce overall costs, especially transportation costs.\n\n\n\nThe principal terms of the loan note are:\n\n\n\n • The loan note is unsecured and has a maturity date of 30th August 2010\n\n\n\n • The note attracts interest at 8% per annum, paid quarterly\n\n\n\n • The loan note is convertible at the option of the holder at any time prior\n to the maturity date at a price of £0.12 per share, a premium of 33% to the\n share price of 9p on the day of issue (31st August 2006)\n\n\n\n • After the initial 24-month period, if the 20-day average closing price of\n the Company's shares at any time attains £0.18 or more, the Company may call\n the convertible loan note for conversion at the conversion price\n\n\n\n • The number of ordinary 10p shares to be issued upon conversion of the note\n are subject to proportional adjustment to reflect stock dividends, share\n splits, reverse share splits and other anti-dilutive events\n\n\n\n • Upon a change of control involving the acquisition of voting control or\n direction over 50% or more of the ordinary shares of the Company, City\n Natural Resource High Yield Trust Plc / Geiger Counter Ltd has the right to\n require the Company to repurchase their loan note, in whole or in part, at a\n price equal to 101% of the principal amount, plus accrued and unpaid\n interest thereon\n\n\n\nMichael Spriggs, Chairman of VANE commented, 'I am delighted to be able to\nannounce our first fund rais...