Think of a convertible equity as a bridge loan towards other types of financings.  If other types do not show up by the time the loan is due say finito.  As for pricing it is usually quite heavily discounted with all kinds of protection clauses for the holder.....

I have not seen alot of these in the mining space whereas they are used quite oftern for IT startups.  

Whether it is good or bad all depends on the terms of the c-equity.  One could argue and financing is a good financing at this stage.  The junior space is so hammered I am surprised this one is not at 3 cents yet.  There are alot better stocks out there than this one at some pretty cheap valuations.