Duluth Metals closes $30m financing
TORONTO (miningweekly.com) – Toronto-listed Duluth Metals on Wednesday said it had closed a convertible debenture financing with buyers, including CEF (Capital Markets), for C$30-million of unsecured convertible debentures in the company.
The debentures would mature on April 10, 2018 and carried a coupon rate of 7.5%.
The debentures were convertible into common shares of the company at a conversion price based on a 30% premium to the 20-day volume-weighted average price (VWAP) of the common shares at the close of trading on March 28.
The 20-day VWAP was $1.74 and the conversion price is $2.26.
Duluth said the financing would be used to fund certain development expenses of the Twin Metals project, located south-east of the town of Ely, Minnesota, as well as to fund the company's continued exploration expenses on its fully owned properties and for general corporate purposes.
The Twin Metals project, a large underground copper/nickel/palladium/platinum/gold project, is a joint venture between the company and Antofagasta. The 100%-owned exploration properties cover more than 40 000 acres close to the Twin Metals project and within the Duluth complex.
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