Denarius Metals Corp. (Cboe CA: DMET | OTCQX: DNRSF) has entered into an agreement with Red Cloud Securities Inc. to act as lead agent and bookrunner on behalf of a syndicate of agents in connection with a best-efforts private placement for gross proceeds of up to C$20,000,000 from the sale of up to 20,000 convertible debenture units of the company at a price of C$1,000 per unit.
Each unit will consist of 1,000 12% per annum gold-linked senior unsecured convertible debentures of the company. Furthermore, each unit will consist of 500 common share purchase warrants of the company, with each warrant entitling the holder to purchase one common share of the company at a price of C$0.70 per Common Share at any time on or before that date which is 36 months after the Closing Date.
The agents will have an option, exercisable in full or in part, up to 48 hours prior to the closing of the offering, to sell up to an additional 3,000 units for additional gross proceeds of up to C$3,000,000.
The company intends to use the net proceeds from the offering for its Aguablanca Project in Spain and general corporate purposes. A portion of the proceeds will be set aside in escrow to fund the monthly interest payments during the first 12 months after the closing date.
The company will apply to list the debentures for trading on Cboe Canada; however, there can be no assurance that the listing of the debentures will be successful, and the company has not received conditional approval from Cboe Canada with regards to such listing.
The offering is scheduled to close on or about 23 May 2024 and is subject to certain conditions including, but not limited to, receipt of all necessary approvals including the approval of Cboe Canada. The units, debentures, warrants and common shares issuable from the conversion or exercise of the debentures and warrants, as applicable, will be subject to a hold period in Canada ending on the date that is four months plus one day following the closing date.
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