Vanadiumcorp Resource Plans To Arrange Debenture Financing To Raise Up To A Maximum Of $2 Million

VanadiumCorp Resource Inc (TSX-V:VRB) has said it plans to arrange a debenture financing to raise up to a maximum of $2 million and also said its board has approved a consolidation of the company’s issued share capital.
Under the terms of the financing, the debentures will mature two years from the date of closing and will bear interest at 10% per annum and will be repayable by the company on the maturity date.
The company said the proceeds of the financing will be used to fund the first stage of new metallurgical testing and production methods for vanadium electrolyte and for general working capital.
As compensation to the lenders for the risk of repayment, the company will issue non-transferable common share purchase warrants exercisable to purchase common shares of the company equal to 100% of the principal amount of the debentures divided by $0.05 per share, or up to 40,000,000 common shares, or 4,000,000 after the consolidation, if the Debt Financing is fully subscribed. The warrants will be exercisable at an exercise price of $0.05 each, or $0.50 after the consolidation, for a period of two years following closing.
The terms of the debt financing are subject to the acceptance of the TSX Venture Exchange
Vanadiumcorp also announced that its board has approved the share consolidation on the basis of ten common shares for one new share of the company. The company currently has 319,251,120 common shares outstanding and will have 31,925,112 common shares outstanding after completion of the consolidation, subject to rounding and the elimination of any fractional shares.. The number of outstanding stock options and warrants of the company will similarly be adjusted by the consolidation ratio, and the exercise prices adjusted accordingly.
The consolidation is subject to exchange approval. The common shares are expected to begin trading on the exchange on a post-consolidation basis after the exchange issues its final bulletin advising of the effective date of the consolidation.
Vanadiumcorp Resource is a mineral exploration company located in Vancouver, Canada, with 100% ownership in the Lac Dore Vanadium, Iron and Titanium Project, located 27 kilometres east-southeast from the city of Chibougamau in Quebec, as well as the Iron T, VTM deposit in Matagami.
The company also owns 100% of a novel hydrometallurgical process, VEPT (Vanadiumcorp, Electrochem, Process Technology) invented by Dr Francois Cardarelli, that consists of digesting vanadiferous feedstocks into concentrated sulfuric acid.
The technology addresses the recovery of vanadium pentoxide, vanadyl sulphate, ferrous sulphate, titanium hydrolysate, and silica from feedstocks such as vanadiferous titano- magnetite, iron ores and concentrates such as magnetite and hematite, vanadium industrial wastes such as BOF-slags, and other industrial by-products also containing vanadium.