TORONTO, ONTARIO--(Marketwired - Sept. 6, 2016) -
Rupert Resources Ltd. ("Rupert" or the "Company") (TSX VENTURE:RUP) is pleased to announce that it has completed its previously announced non-brokered private placement of convertible debentures ("Convertible Debentures") for gross proceeds of CAD$7,707,500 (the "Private Placement").
"The Company thanks its supportive investors, will now turn its focus to completing the acquisition of the permitted Pahtavaara gold mine and is pleased to announce resumption of exploration drilling," said Brian Hinchcliffe, President and CEO of the Company.
Private Placement
The Convertible Debentures have a 36 month maturity date and bear an interest rate of 5% per annum, payable on a semi-annual basis. The Convertible Debentures are secured against the general assets of the Company.
Each Convertible Debenture will be convertible into common shares of the Company ("Common Shares") at the option of the holder prior to maturity, at a price of CAD$0.95 per Common Share (the "Conversion Price"). The Convertible Debentures have typical adjustment provisions.
After 12 months after the issue date of the Convertible Debentures, the Company has the option to repay the principal amount of the Convertible Debentures in Common Shares provided certain circumstances are met, including that the 30 trading day volume weighted average price of the Common Shares is equal to or greater than 170% of the Conversion Price.
The proceeds from the Private Placement will be used for the exploration and development required to assist in returning the Pahtavaara gold mine to production.
The securities issued in connection with the Private Placement will be subject to a four-month hold period, in accordance with applicable securities laws.