Magna Gold finally closes $ 10 million secured debt financing


Magna Gold (TSXV: MGR) closed its previously announced financing. The company managed to raise gross proceeds of $ 10.0 million through a long round of fundraising that the company launched in May 2021 with Delbrook Capital Advisors.

Originally advertised as a “founding and strategic shareholder financing” of the company, in May, when the financing was first announced, it appeared as a slam dunk – no-middleman financing for secured convertible debentures. However, the funding obviously dragged on for months until it finally managed to close this morning.

It appears that the delay may be linked to obtaining the guarantee of the financing by the company. The financing must bear interest at a rate of 8.5% until the security arranged under the financing is delivered to the holders of the debt, with an initial target date for the debt occurring no later than September 30. Once the security is returned, the interest will drop to 6.5%. per year.

Under the financing, the debt is to mature 24 months from the date of issue and be convertible at any time into common shares of the Company at a price of $ 1.25 per common share. Arrangement fees of 1.25% are also expected to be paid on closing.

The proceeds of the financing are to be used for mobilization and exploration activities on the company’s portfolio of properties.

Magna Gold last traded at $ 0.86 on the TSX Venture Exchange.


Information for this briefing was found through Sedar and the companies mentioned. The author has no title or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author does not hold any license.


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