RFC Resource Finance (TSE) says it plans to issue an unsecured 7% convertible debenture to Minnova (TSE) for $6.6 million, maturing in 10 years. Interest at 7% per annum will accrue for the first three years and then be payable semi-annually.
The proceeds will be used to finance a feasibility study at RFC’s Pend Oreille deposit in Washington state. The deposit contains a preliminary reserve estimate of 3.8 million tons grading 10.7% zinc and 1.8% lead. The debenture is convertible into RFC common shares at $1 per share during the first three years at Minnova’s option. RFC may redeem the debenture at any time after two years by paying Minnova $6.6 million plus accrued interest. The agreement is subject to regulatory and director approval. Minnova now holds a 46% interest in RFC.
Be the first to comment on "RFC issues debenture to Minnova"