Metminco Limited Announces to Raise $1 Mn to Support Proposed Merger with Andes Resources

Exploration and mining company, Metminco Limited (ASX: MNC) has received firm commitments for the issue of unsecured convertible notes to raise up to $1 million, to support the proposed merger with Andes Resources Limited, as announced on 13 March 2019.

As per the release, the proceeds of the unsecured convertible notes will be used to fund the company’s working capital requirements and to progress the proposed merger. The funds will be used in undertaking geophysical and geochemical work to refine drill targeting at the Chuscal Gold Project in Colombia. The funds will also go towards satisfying the proposed $4 million (before costs) capital raising, Metminco intends to undertake, in conjunction with Andes, as part of the Proposed Merger.

While commenting on the success of the capital raising, the company’s Executive Chairman, Mr. Kevin Wilson said that the company’s Management team is overwhelmed with positive feedback from a large number of the major shareholders and a number of new investors who share their enthusiasm for the proposed merger with Andes.

He further commented on the proposed merger by stating that the merger will create a Colombian gold business with a much deeper pool of highly prospective exploration assets in a much sought-after region in the Mid-Cauca Gold and Copper-Gold Belt. As this region has yielded multiple multi-million-ounce gold and gold-copper deposits, the company’s Management is very excited by the prospect of combining a plethora of large targets within this richly endowed gold belt.

With a face value of $3,000 each, the convertible notes will be issued in a single tranche, however, they will convert into fully paid ordinary shares in Metminco in two tranches. Under tranche 1, the shares resulting from the conversion of the first 115 Convertible Notes will be issued under the Company’s existing placement capacity. Under tranche 2, the Shares resulting from the conversion of the remaining 219 Convertible Notes will convert subject to Metminco shareholder approval. Convertible Notes under both the tranches will be converted at a conversion price of $0.003. If the proposed merger is not completed the conversion price for the Convertible Notes will reduce to $0.002.

To take the shareholder’s approval for the conversion of the Tranche 2 Notes, the company is planning to conduct a shareholder’s meeting in the second quarter of 2019.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.002, with the market capitalization of ~$2.38 million as on 15 March 2019 (AEST 02:28 PM). In the past six months, the share price of the company declined by 50.00% as on 12 March 2019. It has 52 weeks high of $0.017 and 52 weeks low of $0.002.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Top 25 Dividend Stocks To Consider

People prefer a dividend stock in their portfolio as it possesses the feature of compounding. Compounding means that the earning which is generated through these dividend stock will get reinvested and will eventually create earnings from earning. More precisely, the dividend generated from these dividend stock will get reinvested to buy another set of a share of the dividend stock which results in giving a higher dividend.

Click here to download your top 25 dividend stocks report!

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report

LEAVE A REPLY

Please enter your comment!
Please enter your name here