December 27, 2012
EXERCISE OF POLARIS WARRANTS AND FURTHER DEBT REDUCTION
VANCOUVER, British Columbia – Polaris Minerals Corporation (TSX:PLS) (the "Company") is pleased to advise that the holders of the 13.2 million common share purchase warrants (the "Warrants") issued on March 1, 2012, have agreed to exercise the Warrants in full on, or before, December 31, 2012.
The Warrants have an exercise price of $0.44 each and their exercise will generate cash receipts to the Company of $5.8 million of which $1.9 million will be used to further reduce the Company's outstanding debt to $8.1 million. The balance will be used for general working capital purposes.
Herb Wilson, President and CEO, commented: "We are delighted by this support from the warrant holders who unanimously agreed to exercise at this time. The Company will now enter 2013 in a strong position and is anticipating further increases in sales arising from the recently announced new
March 2, 2012
POLARIS ANNOUNCES CLOSING OF DEBT FINANCING
VANCOUVER, British Columbia . Polaris Minerals Corporation (TSX:PLS) (the "Company" or Polaris") announces that it has completed the debt refinancing announced in January and has issued an aggregate of $15 million in Senior Secured Notes (the "Notes") that mature December 31, 2016. (Financial values are in Canadian Dollars unless otherwise noted).
The net proceeds from the issue of the Notes were used to repay all existing indebtedness of the Company, including interest, under a US$6.35 million credit facility with the Company's exclusive shipper and a $5.0 million bridge loan secured in November 2010. The balance of the proceeds will be used for general working capital purposes.
The Notes are senior secured obligations of the Company that have a first charge against the assets of the Company other than cash and accounts receivable. The Notes bear interest at a rate of 12% per annum, payable semiannually and may be redeemed by the Company at any time without penalty. In conjunction with the issue of the Notes, Polaris issued an aggregate of 13,200,000 common share purchase warrants (the "Warrants") that are exercisable at a price of $0.44 per share until December 31, 2012, at $0.50 per share until December 31, 2013, at $0.55 per share until December 31, 2014, at $0.60 per share until December 31, 2015 and at $0.65 per share until December 31, 2016.
Herb Wilson, President and CEO, commented: "We are pleased to have completed this refinancing step and to have consolidated the Company's debt into a single, 5-year term facility."