NORTH AMERICAN TUNGSTEN CORPORATION LTD. (TSX VENTURE:NTC) has announced that it has closed of an aggregate of US$2,870,000 principal amount of convertible debentures.
The Convertible Debentures mature on October 29, 2013 and bear interest at 10.0% per annum, payable quarterly. The principal is convertible into common shares of the Company at CDN$0.45 per common share (US$0.44 based on a pre-determined fixed exchange rate of US$1.00 = CDN$0.98) until maturity, or 2,267 common shares per US$1,000 principal amount of Convertible Debentures. The Convertible Debentures are secured by a general security agreement that will be subordinated to the Company's senior indebtedness.
The proceeds of the private placement will be used for continuing development of the CanTung Mine and general corporate purposes.
The Convertible Debentures issuable under this placement and the common shares issuable upon conversion of the Convertible Debentures are subject to a four month hold period pursuant to applicable Canadian securities laws and the rules of the TSX Venture Exchange and cannot be traded before March 1, 2011.
Source: NORTH AMERICAN TUNGSTEN CORPORATION LTD.