Chile Mining Technologies Closes Additional $1 Million in Private Financing
SANTIAGO — Chile Mining Technologies Inc. (“CMT” or the “Company”) (PK:LVEN), a mineral extraction company based in Chile, today announced that it has finalized its second and final closing of its private placement financing. The process began on May 8, 2012 with a group of private investors for an total amount of US$1,015,000. The Company has raised total of US$3,135,000 from private investment.
In connection with the second closing, the Company issued secured convertible notes to its investors for a total of $1,015,000, and the rights to purchase an total of 507,500 shares of the Company’s common stock.
The convertible notes have a five-year term and carry an interest rate of 11 percent per year. They are convertible into the Company’s common stock at an initial price of US$2 per share, and are secured by the assets of the Company in the Republic of Chile.
The warrants also have a five year term and are exercisable at an initial price of US$2 per share. Assuming full conversion of their notes and cash exercise of the warrants, the Company would expect to issue approximately 761,250 shares of the common stock. The total outstanding shares of common stock of the Company after such conversion and exercise would be approximately 12,476,755. Net proceeds from the offering are expected to fund new facility expansion, general corporate purposes, and working capital.
Euro Pacific Capital Inc. and Halter Financial Securities, Inc. acted as placement agents for the transaction.
The securities issued in the private placement have not been registered under the United States Securities Act of 1933, as amended or the securities laws of any other jurisdiction. Until they are registered, these securities may not be sold by investors in the United States, except pursuant to an effective registration statement or an applicable exemption from the registration requirements. For more detailed information on this financing, see the Company’s Current Report on Form 8-K which will be filed with the Securities and Exchange Commission on or about June 13, 2012.
Chile Mining Technologies Inc
Jorge Canning 1410