Los Andes Copper Ltd. (TSXV: LA) today reported on the closing of their convertible debenture financing for US$5 million. The financing was originally announced by the company nearly a month ago, on May 3.
The convertible debenture was issued to Queen’s Road Capital Investment Ltd. (CVE:QRC) and has a five-year term while carrying an eight per cent coupon. The debt is convertible into common shares of the equity at a price of $10.82 per share. Interest will be payable quarterly at 5% in cash and 3% in shares, based on a 20-day volume weighted average price prior to the interest payment date.
Proceeds from this investment will be allocated towards the completion of the Vizcachitas project and a refined pre-feasibility study.
Vizcachitas is a copper-molybdenum porphyry deposit, located north of Santiago, Chile. The project has a post-tax NPV (8% discount rate) of approximately USD$1.8 billion and an IRR of 20.77%, based on a $3 per pound copper price. The Vizcachitas Project has a measured resource of 254.4 million tons at a grade of 0.439% copper and an indicated resource of approximately 1.03 billion tons at a grade of 0.385% copper.
Los Andes Copper Ltd. last traded at C$7.45 on the TSX Venture.
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