CALGARY, Feb. 12 /CNW/ - General Mining Properties Ltd. (TSX Venture Exchange: GPL) (the "Corporation") is pleased to announce the terms of a proposed financing. The Corporation proposes to undertake a non-brokered offering of up to US$3,500,000 worth of interest bearing gold notes ("Gold Notes") on a best efforts basis (the "Offering"), at a subscription price of US$6,250 per Gold Note.
The Gold Notes will bear interest up to the date of delivery at 10% per annum payable annually on the anniversary of issue. The Gold Notes will have a term of 24 months from the date of issuance and there shall be no penalty to the Corporation or additional interest for early payment or physical delivery on the Gold Notes. Physical delivery will not occur before twelve (12) months from the date of issue of the Gold Notes, and therefore interest for at least a full twelve (12) months will be paid.
Subscribers for a Gold Note will also receive 12,500 warrants to purchase common shares of the Corporation at an exercise price of CDN$0.50 per share, such warrants to expire two (2) years from the date of closing of the Offering.
Upon receiving a notice that the Corporation is ready to make physical delivery, a holder of Gold Notes may elect either:
(a) to receive one (1), ten (10) troy ounce gold bar (gold purity .995 or
greater) together with a cash payment equal to the accrued interest
(the Corporation may make settlement through other gold weights
provided aggregate gold weight is ten (10) troy ounces); or
(b) to receive a cash payment equal to the price realized by the
Corporation upon sale of the aggregate of ten (10) troy ounces of
gold less any applicable commissions and charges together with
accrued interest on the Gold Note.
The net proceeds from the Offering will be used towards the Corporation's proposed acquisition of a 70% interest in the Yarnell past producing gold mining property located approximately 70 miles from Phoenix, as announced in the Corporation's January 24, 2008 press release, and for general working capital requirements.
Closing of the Offering is targeted for May 30, 2009 or such other earlier or later date as the Corporation determines and the TSX Venture Exchange allows. The Offering is subject to approval by the TSX Venture Exchange.
The Corporation is a mining exploration and development company with holdings in northern Alberta, Canada. Information about the Corporation can be found at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.