The agreement calls for Homestake to provide a loan facility of up to $6 million for a term of two years, bearing an interest rate of prime plus 1% per annum. In return for the facility, Homestake will receive a warrant to purchase 469,974 shares of North American Metals exercisable at $3.83 per share until Nov 26, 1991.
President Jack Thompson announced that a rights offering would likely be made in the near future with the objective of raising about $6 million. The funds would be used to pay any advances on the loan from Homestake.
Homestake has indicated that it will exercise its 73% portion of the offering and provide a standby commitment for any unexercised rights. A further warrant may be issued to Homestake in return for this backstop provision.
The Golden Bear project, in northwestern British Columbia, is a 50/50 joint venture between North American Metals and Chevron Resources.
]]>
Be the first to comment on "North American Metals finds financing"