Mines Management, Inc. (TSX:MGT,NYSEMKT:MGN) will sell 4,000 units consisting of one share of its series B 6 percent convertible preferred stock. The company will also sell a warrant to purchase approximately 636 shares of Mines Management’s preferred stock, par value $0.001 per share, at a price to the public of $1000 per unit.
As quoted in the press release:
Each share of Series B Convertible Preferred Stock is convertible into shares of common stock at a conversion rate of approximately 1,271 shares of common stock for each share of Series B Convertible Preferred Stock (equivalent to a conversion price of $0.7866 per share of common stock). The warrants will be immediately exercisable at an exercise price of $1.0816 per share and will expire 52 months from the date of issuance. Mines Management expects that the offering will yield gross proceeds, before estimated offering expenses, of $4.0 million and intends to use the net proceeds from this offering for (i) the advancement of the permitting process for its Montanore Project and preparation for the delineation drilling program, which will include completion of the dewatering and rehabilitation of the Libby adit and (ii) general corporate purposes, including possible acquisition and exploration of new mining properties.