Gold Wheaton Gold Corp. (TSX: V.GLW, Stock Forum) announced Tuesday that Sprott Asset Management has agreed to subscribe for $100 million in senior secured notes.
The notes will bear interest at the rate of 10% per year and will have a five year term, says the company, adding that the net proceeds of the debt financing will be used for general corporate purposes, including gold stream acquisitions.
Gold Wheaton has also agreed to issue Sprott 125 million warrants with a five year term, at a price of 50 cents per share. The company says it will have the option to increase the offering of notes to a total principal amount of $115 million.
"We are exceptionally pleased to have Sprott Asset Management as a financial partner." said David Cohen, the company’s chairman and CEO. "Sprott has a history of recognizing value in long-term resource trends and this facility signifies their endorsement of Gold Wheaton. This C$100 million significantly augments our cash position in a non-dilutive manner and positions us well to execute future accretive transactions on behalf of our shareholders."
On the company’s Bullboard, sammyj1 said: “this is really huge news. gives glw lots of flexiblity and the size necessary to be taken seriously, expect another good deal for them to come through seriously[sic]”
Shares of the company were up 6.5% to 24.5 cents Tuesday.
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