Glen Eagle Announces a Proposed Placement of Convertible Notes and a Proposed Placement of Non-Convertible Notes
January 17 2014 - 7:45AM
Access Wire
Montreal, January 17, 2014: Glen Eagle
Resources Inc. (GER-TSXV) (the "Corporation") announces that it
intends to proceed to a private placement of convertible notes and
a private placement of non-convertible notes, for aggregate gross
proceeds of up to $600,000.
The convertible notes bear
interest at a rate of 20% per year and are repayable two years
after the closing, subject to the Corporation's right to prepay the
notes. The notes are convertible, at the option of the holders, in
shares of the Corporation at a price of $0.50 per share, at any
time prior to their maturity date. In the event the Corporation
fails to repay the notes and the interest thereon at maturity, each
holder of notes will have the right to convert them into shares of
the Corporation at the greater of: (a) the Market Price of the
shares of the Corporation (as defined in the policies of the TSX
Venture Exchange (the "TSX")); and (b) the weighted average price
of the shares of the Corporation for the last ten trading days,
subject to the prior approval of the TSX.
The non-convertible notes
bear interest at a rate of 15% per year and are repayable two years
after the closing, subject to the Corporation's right to prepay the
notes. Each tranche of $1,000 of non-convertible notes is
accompanied by 1,666 warrants. Each warrant entitles its holder to
acquire one share of the Corporation at a price of $0.40 per share
until December 31, 2015.
The private placements of
convertible notes and non-convertible notes will only be made with
accredited investors, and will be non-brokered. The placements are
subject to the approval of the TSX.
The proceeds from these
placements will be used for working capital and to acquire tailings
which will be processed on Sand Gold's
concession, the Corporation's subsidiary, located in
Nicaragua. The Corporation considers that the funds generated from
these placements will be more than sufficient to carry out its
business plan in Nicaragua as the infrastructure is near
completion.
Forward-looking
statements
Certain statements made herein may constitute
forward-looking statements. These statements relate to future
events or the future economic performance of the Company and carry
known and unknown risks, uncertainties and other factors that may
appreciably affect their results, economic performance or
accomplishments when considered in light of the content or
implications o statements made by the Company. Actual events or
results could be significantly different. Accordingly, investors
should not place undue reliance on forward-looking statements. The
Company does not intend and undertakes no obligation to update
these forward-looking statements.
Neither the TSX Venture
Exchange nor its regulation services provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
FOR FURTHER
INFORMATION CONTACT:
Jean Labrecque,
President jl@gleneagleresources.com
Glen Eagle Resources Inc
999 DeMaisonneuve West
Suite 725
Montreal, Quebec
Tel: 450-229-4488 Watt:
1-855-229-4488
Website:
http://www.gleneagleresources.com/
Not
for distribution to U.S. newswire services or for dissemination in
the United States
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