Mineworx Technologies Ltd (CVE:MWX) (OTCQB:MWXRF) announced Tuesday that it intends to proceed with both a non-brokered private placement and a non-brokered private placement of 12% unsecured convertible debentures to raise a total of C$2 million in gross proceeds.
The company said it plans to use the money to continue the development of its catalytic converter project in Tennessee as well as for working capital purposes.
In April, Mineworx signed a letter of intent with Davis Recycling Inc to develop, build and operate a commercial pilot plant to recover platinum group metals from catalytic converters.
Under the non-brokered private placement, Mineworx will offer units at a subscription price of C$0.075 apiece, consisting of one common share and one common share purchase warrant.
Each warrant will entitle the holder to purchase one common share at C$0.10 each at any time prior to the date that is 48 months from the date of the issuance of the units, subject to earlier termination in the event that the closing price of the common shares on the TSX Venture Exchange exceeds C$0.20 for 10 consecutive trading days. Then the warrant will only be exercisable for a period of 30 days following the date on which such written notice is sent to the subscribers.
All told, 13,333,335 shares are being offered to raise C$1 million. The financing is expected to close on or about June 30, 2020.
Unsecured convertible debentures
Via the non-brokered private placement of the 12% unsecured convertible debentures, Mineworx plans to raise an additional C$1 million at C$1,000 per unit, consisting of one 12% unsecured convertible debenture and 10,000 common share purchase warrants.
The principal amount of the debentures outstanding and all accrued and unpaid interest will be due and payable in cash on the date two years following the closing, or maturity date, expected on or about June 30.
Holders of the debentures will be entitled to convert the principal amount into common shares for C$0.10 per share. Each warrant will entitle the holder to purchase one common share at C$0.12 each for a period of 24 months from the closing.
The warrants will have an acceleration provision whereby in the event that the closing price of the common shares listed on the exchange have traded at C$0.25 or higher for 10 consecutive trading days, Mineworx has the right to accelerate the expiry date of the warrants to 30 days from the date of issuance when the company publicly announces such a move.
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