Denarius Metals Corp. (TSXV: DSLV | OTCQX: DNRSF) has announced the closing of the first tranche of its private placement of senior unsecured convertible debentures for gross proceeds of about C$6.49M. As announced prior, Denarius Metals plans to issue up to a total of C$25M of debentures and expects to complete the offering in one or more additional tranches prior to Halloween of this year.
“We have a solid order book comprised of management, institutional and retail investors for our offering that will be completed in its entirety this month,” commented, Serafino Iacono, executive chairman and CEO of Denarius Metals.
“Closing this first tranche of debentures, predominantly management and retail investors, allows us to get moving with deposits on the longer lead time items, including the processing plant, to meet our critical path to start concentrate production in the fourth quarter of 2024.”
In conjunction with completing the first tranche of the offering, the company has updated the key terms of the debentures in response to market conditions. The final key terms of the debentures include the debentures are issuable at a price of C$1.00 per debenture.
The debentures bear interest at 12% per annum, paid monthly in equal installments in cash. The first interest payment will be made on 30 November 2023 and will include accrued interest from the date of issuance of the debentures.
The company will pay interest only during the first year of the term while the Zancudo project construction is being completed. A portion of the gross proceeds has been set aside in escrow to fund the monthly interest payments during the first 12 months.
The company has received conditional approval to list the debentures on Cboe Canada after the expiry of the four-month hold period. Listing of the debentures on Cboe Canada is subject to final approval by Cboe Canada at the time of listing and the company fulfilling listing requirements.
For further information, please visit: www.denariusmetals.com
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