ConversionTORONTO, ONTARIO – December 10, 2010 – Ivernia Inc. (“Ivernia” or the “Company”) (TSX: IVW) is pleased to announce that the four holders of its US$37.4 Million (“M”) in outstanding senior secured convertible notes (the “Notes”) have exercised their option under the terms of the Notes and fully converted the Notes in exchange for an aggregate of 340 M common shares of Ivernia.
US$38.4M in Notes were originally issued during the period from March to May, 2009, carrying a coupon of 8% per annum and each dollar of principal was convertible into 9.091 common shares of the Company. In December of 2009 and January of 2010, Ingalls and Snyder LP (“I&S”), converted a total of US$1.0M of Notes in exchange for 9,090,010 shares.
Under the terms of the Notes, Sentient Global Resources Fund II, L.P. and Sentient Global Resources Fund III, L.P. (collectively known as “Sentient”), I&S, OppenheimerFunds Inc. (“Oppenheimer”) and Rossport Metals and Mining Fund LP (“Rossport”) will exchange the remaining US$37.4M in principal of Notes for the following numbers of shares:
Number of Shares
Sentient
190,000,001
I&S
95,454,456
Oppenheimer
45,454,546
Rossport
9,090,010
Total
340,000,003
Alan De’ath, President and CEO of Ivernia commented: “I am pleased to acknowledge this strong vote of confidence from four of our major shareholders. The early conversion of the notes serves both to simplify our capital structure and strengthen our balance sheet going into 2011. The early conversion adds immediate shareholder value in terms of significant coupon savings, and I believe reflects the note holders’ long-term commitment to Ivernia as we ramp-up to full production at the Magellan Mine and pursue implementation of our corporate growth strategy.”
Following the conversion, the Company will have 529,290,131 shares issued and outstanding and 533,491,796 on a fully diluted basis. The Company has agreed to pay interest up to and including December 31, 2010 of US$2.03M to the holders and will make that payment as previously scheduled on April 27, 2011. As a result of the early conversion, the Company will save approximately $7M in coupon payments that would have been incurred over the period from January 1, 2011 to their April 27, 2013 maturity.