Giyani Metals Corporation (TSXV:WDG)(FRANKFURT:KT9) announced that it has entered into an agreement with Sector Capital Management Corporation (the “Agent”) pursuant to which the Company will issue on a private placement basis convertible debenture units (the “Convertible Debenture Units”) for aggregate gross proceeds of up to $2,000,000.
Each Convertible Debenture Unit will consist of 5.0% senior unsecured convertible debentures (the “Convertible Debentures”) and 1,500 common share purchase warrants (the “Warrants”) of the Company (the “Offering”). The Convertible Debentures will have a term of three years and will be convertible at the option of the holder into common shares of the Company at a conversion price of $0.43 per share. Each Warrant will be exercisable to acquire one common share of the Company at an exercise price of $0.65 per share for a period of 30 months following the closing date of the Offering.
The Company has also granted the Agent an option to purchase additional Convertible Debenture Units under the Offering for gross proceeds of up to $400,000.
The Convertible Debentures and the Warrants comprising the Convertible Debenture Units and any common shares of the Company issuable upon conversion or exercise thereof, as applicable, will be subject to a statutory hold period of four months and one day. Closing of the Offering is expected to occur on or about October 17, 2017. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.
Giyani intends to use the funds received from the financing to advance the Kanye Manganese Project in Botswana including resource drilling, process engineering studies, additional metallurgical studies and for general corporate purposes.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
On behalf of the Board of Directors of Giyani Metals Corporation.
Duane Parnham, Executive Chairman & CEO
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, the financial picture of the Company etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.