Woulfe Mining Corp has arranged a non-brokered private placement of up to $4 million in convertible unsecured subordinated debentures at a price of $1000 per debenture. The company intends to use the net proceeds for completion of a proposed $6 million work program on the Sangdong Tungsten-Molybdenum Project.
The debentures will have an interest rate of 12% per year, payable monthly in arrears. They will mature and be repayable on December 31, 2016.
The Sangdong work program will include diamond drilling to better define the ore body on the project, as well as additional work on mine design, mining method selection, metallurgical process design, and much de-risking of other technical aspects of the project.
The balance of the net proceeds of the offering will be utilized to fund the company's working capital deficit and budgeted general and administrative costs for 2014. The offering is subject to regulatory approval.
Dundee Corporation, which owns, directly or indirectly, approximately 15.28% of the outstanding common shares of the company on undiluted basis and 21.51% of the outstanding common shares of the company on a partially diluted basis, intends to subscribe for the full amount of the debentures being offered.
Woulfe Mining, through its wholly-owned subsidiary, Sangdong Mining Corp, is dedicated to developing the Sangdong mine which was historically one of the largest tungsten mines in the world and one of the few long life, high-grade tungsten deposits located outside China.
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Placement