Crocodile Gold has outlined its plans to issue $25m in convertible debt to fund its mining projects in the Australian state of Victoria.
The company filed a preliminary short form prospectus with the Toronto Stock Exchange with regard to the offering and appointed Raymond James as the underwriter.
"The debentures will be secured on a second line basis by all property and assets of the company, and by a pledge of all of the capital stock of the company's Canadian subsidiary," said the company in a statement.
Crocodile said that the Debenture Offering is being pursued to fund its five-year plan to expand projects including the Big Hill project and Stawell mine.
Additionally, the proceeds from the offering will be used to fund commercial production at the company's Cosmo property and Union Reefs and Maud Creek projects in Northern Territory.
The maturity date of the debt is set for 30 April 2018, until which the company is expected to pay 5% semi-annual arrears on 31 October and 30 April of every year starting 31 October 2013.
Raymond James has been granted an over-allotment option to purchase debentures in an aggregate principal amount of up to an additional $3.7m, exercisable after 30 days following the closing of the debenture offering, which is expected to occur on or March 25.
Image: Crocodile filed a preliminary short form prospectus with the Toronto Stock Exchange. Credit: nodomain.cc.