EMC Metals Corp. (TSX:EMC) agreed to issue convertible loans for total proceeds of USD$650,000 and the principal amount of the loan may be converted into up to 13,000,000 common shares at a rate of US$0.05 per share. The convertible loans have an interest rate of 10% per annum and a maturity date of 12 months from the closing date.
As quoted in the press release:
The convertible loan will be secured by an interest in the assets of the Company’s subsidiary, Wolfram Jack Mining Company (primarily the Carlin Vanadium mineral rights), the Norway exploration rights and a subordinated interest in Springer Mining Company assets. The loan agreements include standard adjustment provisions which in certain circumstances may adjust the conversion price to no less than C$0.039.