Mineworx Technologies Ltd (CVE:MWX) (OTCQB:MWXRF) said it has closed the first tranche of its private placement, raising gross proceeds of $540,000 for its catalytic converter project.
The funds raised are comprised of issued shares and unsecured convertible debt, with the Surrey-based company selling 5.6 million units to raise $420,000 and 120 units of convertible debt for $120,000.
Mineworx announced in April that it is pairing up with Tennessee’s Davis Recycling Inc to develop, build and operate a commercial pilot plant to recover platinum group metals from catalytic converters.
Under the term sheet, Mineworx offered the units at a subscription price of C$0.075 per unit, consisting of one common share and one common share purchase warrant exercisable at C$0.10 for a two-year period. The agreement is 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, at which point the warrant will only be exercisable for a period of 30 days following a written notice to the subscribers.
The convertible debentures were sold at $1,000 apiece 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 two-year period.
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.
The firm is aiming to raise up to $2 million in total.
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