Coro Mining (TSX:COP) closed the first tranche of its convertible debenture with Greenstone Resources. This forms just one part of a much larger ~US$9 million combined convertible debenture and equity financing.

The first tranche comprises US$5.1 million which is repayable on the date that is 350 days after the date of drawdown. The first tranche requires repayment of US$6.375 million resulting in an effective interest rate of ~25%. The proceeds of which will be used to acquire the Nora Plant and perform certain work programs in order to lift the existing Suspension Order (refer Coro’s New Release dated June 16, 2015). In the event that the amounts are not repaid in full in cash, any unpaid amounts will be converted into common shares of Coro at a conversion price of C$0.04 per share.

Coro president and CEO, Alan Stephens, said:

We are very pleased to have closed the first tranche of the Convertible Debenture which will enable us to acquire the Nora plant during August and achieve our objective of becoming a copper producer. We now look forward to closing the second tranche of the financing and continuing the development of the Company’s assets with the support of Greenstone.

Click here for the full press release.