Mega Precious Metals (MGP-V) closes $3.33-million (U.S.) first tranche
Message 29274935
Dec 31, 2013 - News Release
Mega Precious Metals Inc. has completed the first tranche of the previously announced financing with Pacific Road Resources Funds, whereby Pacific Road has invested in $3,330,398 (U.S.) aggregate principal amount of unsecured zero coupon convertible notes, which are convertible into Mega common shares at a conversion price of 11.22 cents per common share, pursuant to an agreement dated Dec. 4, 2013, between Pacific Road and the company. The amount of the investment was increased as a result of the completion of the company's private placement which closed on Dec. 20, 2013.Gross proceeds from the first tranche financing will be used to fund exploration and development on Mega's Monument Bay project.
Pacific Road has the right to invest three additional tranches for a total investment of up to $40-million (U.S.), which are exercisable by Pacific Road following the satisfaction of certain deliverables by the company regarding its Monument Bay project. The cumulative funding from Pacific Road, should each tranche be exercised, will allow the company to fully fund the technical studies required to advance the Monument Bay project to feasibility, including a preliminary economic assessment (expected to be completed in 2014) and a prefeasibility study thereafter. For further details, please refer to the company's press release dated Dec. 4, 2013, and a copy of the definitive agreement, each of which is accessible on the company's SEDAR profile.
As consideration for its services as the company's financial adviser, Paradigm Capital Inc. received a commission equal to 3 per cent of the aggregate gross proceeds of the first tranche financing. Pacific Road Capital Management also received a fee equal to 3 per cent of the aggregate gross proceeds of the first tranche financing.
The first tranche convertible notes are subject to a four-month hold period under applicable securities laws in Canada.
Mega will be hosting a conference call on Tuesday, Jan. 7, at 11 a.m. ET to discuss the recently completed financing agreement for up to $40-million (U.S.) with Pacific Roads Resources Funds and the completion of the $1.4-million best-efforts flow-through financing.
The call will be hosted by Glen Kuntz, president, chief executive officer and director.
Conference call details
Time: Tuesday, Jan. 7, 2014, at 11 a.m. ETToll-free: 866-261-6767
Local: 416-850-2050
Passcode No.: 2904885 |
