St. Gen. cancels Swiss debentures

St. Genevieve Resources (TSE) recently bought for cancellation, $10.7 million worth of its 5.625% convertible bonds, through a transaction on the Swiss bond market. The bonds were purchased for the equivalent of 105% of par value, thus reducing the potential dilution of St. Genevieve’s capital stock by 4.8 million common shares and its debt by $10.75 million.

After taking into account the cancellation and the number of bonds held by the corporation, the value of bonds issued and outstanding now amounts to $12 million.

The bond transaction follows the recent settlement of a legal dispute involving St. Genevieve’s 50% owned affiliate Societe Miniere Louvem (TSE) and Aur Resources (TSE). As part of the settlement, Noranda Minerals, which owns 22.7% of Louvem, agreed to lend St. Genevieve $19 million for a 5-year term.