News Of Interest
Maybe the second last sentence has nothing to do with SUF's recent experience, and maybe it does not, but here is one cancelled investment.
DIAMONDWORKS BORROWING US$5 MILLION OF CONVERTIBLE LOANS
VANCOUVER, June 19 /CNW/ - Peter Meredith, Chief Financial Officer of
DiamondWorks Ltd., announced today that DiamondWorks has borrowed US$5 million
of convertible loans. The first US$2.5 million tranche is repayable on April
20, 2000, and the second US$2.5 million tranche is repayable on June 15, 2000,
subject to the lender's right to accelerate repayment upon the occurrence of
certain events. Interest is payable on each tranche at LIBOR plus 2.75% in
the first year and at LIBOR plus 3.25% thereafter.
The loans will be used to fund the company's ongoing development work on
its diamond properties in Africa, as well as for general corporate purposes.
The first US$2.5 million tranche and interest thereon may be converted in
whole or in part into up to two million common shares in the capital of
DiamondWorks at the lender's option at any time up to April 20, 1999, and at
DiamondWorks' option any time thereafter. The second US$2.5 million tranche
and interest thereon may be converted in whole or in part into up to two
million DiamondWorks shares at the lender's option at any time up to June 15,
1999, and at DiamondWorks' option at any time thereafter. Such conversions are
subject to receipt of applicable regulatory approvals and to DiamondWorks and
the lender mutually agreeing on the conversion price, failing which no
conversion occurs and the loans become immediately repayable.
The company also announced that it has completed its initial due
diligence evaluation of the Monastery pipe in South Africa. The company has
decided not to exercise its option on this property.
DiamondWorks' shares trade on the Toronto and Vancouver stock exchanges
under the symbol DMW.
Regards |
