Sacre-Coeur closes $3.78-million (U.S.) first tranche
Sacre-Coeur Minerals Ltd (C:SCM)
Shares Issued 59,684,273
Last Close 1/16/2013 $0.15
Thursday January 17 2013 - News Release
Mr. Gregory Sparks reports
SACRE-COEUR MINERALS ANNOUNCES CLOSING OF US $3.78 MILLION FIRST TRANCHE OF GOLD PARTICIPATING BOND OFFERING
Sacre-Coeur Minerals Ltd., further to its news release dated Nov. 7, 2012, has closed the first tranche of a brokered private-placement offering for $3,781,600 (U.S.) of gold participating bonds. The Offering was arranged by Canaccord Genuity Corp. and Bank Gutenberg AG (the "Co-Arrangers"). Canaccord Genuity Corp. also acted as placing agent in connection with the Offering.
The Bonds, which mature on December 31, 2016, bear interest at a rate of 10 percent per annum on the declining balance payable in cash quarterly. The Bonds will be redeemed in sixteen equal quarterly installments, by delivery of a total of 2,608 ZKB Gold ETF units - Class A (SIX: ZGLDUS), the value of which is backed by physical gold only, and which is listed or traded on the SIX Swiss Exchange. The Bonds have been listed on the Channel Islands Stock Exchange with effect from 6 p.m. (London time) on January 16, 2013.
An additional tranche of up to US$2,366,400 under the same terms is expected to close shortly, for a maximum aggregate raise of US$6,148,000, including overallotment. It is anticipated that the amount of gold committed to amortize the maximum raise over the term of the Bonds will represent less than 20% of the Company's forecast gold production for the amortization period.
The placing agent received a commission of 8% of the gross proceeds of the raise, or US$302,528. The Co-Arrangers received a corporate finance fee of US$60,000 plus 900,000 units consisting of one common share of the Company plus one warrant exercisable into a common share of the Company at C$0.15 for a period of two years from the date of issue. The placing agent also received 2,522,327 warrants exercisable on the same terms. All of these securities issued as compensation to the placing agent and the Co-Arrangers are subject to a 4-month hold period in Canada expiring May 16, 2013.
The Company intends to use the proceeds of the Offering for advancement of its Million Mountain hard-rock, National Instrument 43-101 ("NI 43-101") resource to a development-ready/final investment decision state, expansion and improvement of its current production, continued exploration and resource development efforts, and for general corporate purposes.
We seek Safe Harbor.
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