VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2012) - Premium Exploration Inc. (TSX VENTURE:PEM)(OTCQX:PMMEF) ("Premium" or the "Company") is pleased to announce that it has arranged a non-brokered private placement (the "Private Placement") of senior secured debentures (the "Debentures") of the Company to raise gross proceeds of up to $350,000.
The Debentures have a minimum face value of $1,000, each bearing interest of 15% per annum over a two year term issued together with bonus shares and bonus warrants. The Debentures are fully secured by the assets of the Company.
The principal amount and all accrued and unpaid interest shall be due and payable in full on August 31, 2014 (the "Maturity Date"). The Debentures all rank pari passu in priority among each of them and the principal and any accrued unpaid interest may be prepaid after one year from the date of issuance, in whole or in part (pro rata), provided that a pre-payment penalty must also be paid to Debenture holders equal to 75% of the amount of interest that would accrues as at the Maturity Date. The Debentures are non-convertible.
Subscribers will receive 2,000 bonus units (the "Bonus Units") for every $1,000 principal amount of Debentures they purchase in the Private Placement. Each Bonus Unit will consist of one common share (a "Bonus Share") and two common share purchase warrants (each whole warrant, a "BonusWarrant"). Each Bonus Warrant will entitle the holder to acquire one common share of the Company at an exercise price of
.15 per share for a period of 24 months from the date of issue.