Subject to regulatory approval,
An independent feasibility of the property is under way; it must be completed, and development financing secured, by May 2003 (T.N.M., Sept. 23/02).
The proposed placement will see 2,500 units sold at $1,000 apiece. A unit consists of an equivalent number of notes and 1,960 non-transferable warrants that mature three years after the deal closes.
Each note can be exchanged for shares at prevailing market rates, less an allowable discount, or at 40 per share, whichever is greater at the time of conversion. Manhattan retains the right to redeem the notes in return for their face value plus a premium of 7.5% to 20%, depending on when it elects to do so.
The warrants, which are not subject to the redemption clause, entitle the holder to buy a share at 51. If all of them are exercised, Manhattan reaps $2.5 million.
At last report, Tambo Grande hosted a probable oxide reserve of 8.2 million tonnes grading 3.34 grams gold and 58.7 grams silver per tonne. An underlying sulphide zone contains about 57.8 million tonnes running 1.5% copper and 0.9% zinc, plus 0.5 gram gold and 25 grams silver.
On June 30, Manhattan had a working capital deficiency of US$990,000. Its cash or equivalents stood at US$219,000.
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