Toronto-based
The company recently issued $4 million worth of secured debentures and $2 million worth of shares and warrants. The debentures can be converted into units, valued at 33, if St Andrew’s share price trades above 45 over 20 days. A unit would consist of a share and half a warrant, with a full warrant entitling the holder to another share within three years, at 20.
The debt was repaid with 11.8 million treasury shares.
Proceeds will be used to replace existing secured debt facilities and other debt. About $2 million is expected to remain after the restructuring, most of which is earmarked for the Taylor gold project, near Timmins, Ont.
Taylor hosts an indicated and inferred resource of 2.5 million tonnes grading 7.66 grams gold per tonne. A conceptual study calls for the mining of 1,000 tonnes per day, with ore to be processed at the nearby (currently idle) Stock mill.
Underground development at Taylor is expected to last 18 months and cost $25 million to complete.
St Andrew holds some 129 sq. km along the Porcupine-Destor fault, a known conduit for gold-bearing fluids in the Timmins region. Recent efforts have been focused in and around the Taylor, Stock and Hislop properties.
Griffiths McBurney & Partners managed the financings on a best-efforts basis.
St Andrew now has 53.5 million shares outstanding. Charles Gryba has been replaced by Glenn Laing as president.
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