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Crowflight Announces Bridge Loan and Amends Private Placement Financing |
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Tuesday, 27 July 2010 23:46 |
CROWFLIGHT MINERALS INC. ("Crowflight" or the "Company") (TSX: CML) announces that it has amended the previously announced private placement financing (see press release of July 9, 2010) to a $5 million bridge loan from King Place Enterprises Limited ("King Place") with the potential for a further financing of $5 million to be arranged by King Place on a commercially reasonable efforts, private placement basis.
The loan will be in the form of a $5,000,000 principal amount convertible promissory note (the "Note") to be issued by Crowflight to King Place. The holder may elect to convert the accumulated principal and interest, in any proportion or combination thereof, at any time after August 19, 2010, into common Shares of Crowflight, at a conversion price equal to the volume weighted average price of the common shares of Crowflight on the five trading days of the Toronto Stock Exchange preceding receipt of the notice of conversion; less permitted TSX discount.
The potential additional $5 million financing would result from the sale on a private placement basis, of a further 35,714,285 common shares of the Company as arranged by King Place, at a price of $0.14, within 35 days following the date hereof, subject to the receipt of regulatory approval.
The proceeds from the loan will be used for capital expenditures at the Bucko Lake Mine and general corporate and working capital purposes.
The loan and potential additional financing remains subject to the receipt of all regulatory approvals, including approval of the Toronto Stock Exchange. |
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Last Updated on Tuesday, 27 July 2010 23:48 |
