Electra Stone arranges $850,000 debenture financing Electra Stone Ltd. has arranged, subject to TSX Venture Exchange and (if required) shareholder approval, a private placement of up to $850,000. by the issuance of a convertible debenture(s).
The company has entered into a $350,000 convertible loan agreement (of the $850,000 proposed) with Costigan Capital Corp., a private consulting company controlled by John A. Costigan, the president and chief executive officer of Electra.
Mr. Costigan commented: "I believe that the new direction of Electra (as exemplified by its entry into the jade sector) will not only be the fulcrum for increased profitability but will allow Electra to execute on a myriad of jade and industrial mineral opportunities. This loan agreement clearly demonstrates my confidence in the financial soundness of this new strategic direction."
Description of loan agreement
This is an unsecured two-year convertible loan bearing 12-per-cent interest per year. The lender has an option to convert up to 100 per cent of the principal amount of the loan outstanding plus interest compounded into units of Electra. The conversion price is five cents during the first year and thereafter the greater of 10 cents and the market price as defined by TSX-V policies. Units are described as one share and one warrant, with each warrant being exercisable to purchase one share at any time during the 24-month period from the issue date.
The proceeds will be used for equipment purchases, jade project development, continuing operations and corporate development.
About Costigan
Costigan is a private consulting corporation headquartered in Vancouver, B.C.
Management changes
The company has accepted the resignations of Johan (Jo) Shearer as a director of the company and of Jody Bellefleur as chief financial officer. Management would like to thank Mr. Shearer for his dedication and service to Electra for more than a decade and Ms. Bellefleur for her tireless devotion during the reorganization and transition of the corporation.