NEMI closes American Bonanza unit purchase
NEMI closes American Bonanza unit purchase, gold loan
2012-09-17 16:32 ET - News Release
See News Release (C-NNE) NEMI Northern Energy & Mining Inc
Mr. Michael Cooney of NEMI reports
NEMI ANNOUNCES $2.5 MILLION INVESTMENT IN AMERICAN BONANZA GOLD CORP.
NEMI Northern Energy & Mining Inc. has completed an investment of $2,456,735 in American Bonanza Gold Corp. The investment has been made through a $1-million purchase of units of American Bonanza, as part of a larger non-brokered private placement of 25 million units, and an investment through American Bonanza's currently outstanding gold loan facility in the amount of $1.5-million.
Private placement
American Bonanza has completed a private placement to advance production at its newly constructed Copperstone gold mine in Arizona. In connection with the offering, American Bonanza has issued 25 million units at a price of 20 cents per unit for gross proceeds of up to $5-million. The units issued pursuant to the offering are composed of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share at a price of 30 cents for a period of one year from the date of issuance.
Expansion of gold loan facility
NEMI has invested an additional $1,456,000, through American Bonanza's existing gold loan, increasing the size of the facility to $6-million. In connection with the investment, the terms of the existing gold loan have been restructured so as to be repaid commencing six months after the restructuring, with repayments estimated to commence during March, 2013, and completing during October, 2013, through the delivery of gold ounces at a deemed price of $1,200 per ounce. In connection with the advance and the restructuring of the gold loan, NEMI has received 1.5 million share purchase warrants of American Bonanza. Each warrant will entitle the holder to purchase one common share of American Bonanza at a price of 50 cents per share, exercisable for a period of two years from closing.
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