U.S. copper miner Arimetco International (TSE) has completed a private placement of US$8.75 million worth of convertible notes to finance development of its Van Dyke porphyry copper project in Arizona.
The placement was under-written by First Marathon Securities Ltd. and Midland Walwyn Capital of Toronto.
Each convertible note entitles the holder to acquire an equal face amount of 8% convertible redeemable debentures. The debentures mature Aug. 1, 2001, and are convertible into common shares of Arimetco at the rate of approximately 288 common shares for each US$1,000 principal amount.
The debentures can be redeemed by Arimetco at par together with accrued and unpaid interest at any time after Aug. 1, 1994, if the company’s common shares trade above $5 each for more than 30 consecutive trading days. Debenture holders have a onetime right to put the debentures back to Arimetco at par together with accrued and unpaid interest on Aug. 1, 1998. Interest on the debentures of 8% annually is payable quarterly, in arrears, on the last day of each calendar quarter.
In addition, Arimetco is preparing to file a preliminary prospectus to enable it to distribute the debentures in Ontario, British Columbia, Alberta and Manitoba.
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