North American Tungsten offers convertible debentures

NORTH AMERICAN TUNGSTEN CORPORATION LTD. (TSXV:NTC) announced an offering of an aggregate of up to US$2,850,000 principal amount of convertible debentures . The Convertible Debentures mature on the date that is 36 months after the date of issuance and bear interest at 10.0% per annum, payable quarterly. The principal is convertible into common shares of the Company at CDN$0.45 per common share (US$0.44 based on a pre-determined fixed exchange rate of US$1.00 = CDN$0.98) until maturity, or 2,915 common shares per US$1,000 principal amount of Convertible Debentures. The Convertible Debentures will be secured by a general security agreement that will be subordinated to the Company’s senior indebtedness.

The Company further announces a non-brokered private placement of 7,000,000 units at a price of CDN$0.38 per unit for proceeds of CDN$2,660,000. Each unit will consist of one common share and 2/7 of a share purchase warrant. Each whole share purchase warrant will be exercisable at a price of CDN$1.00 into one common share for a period of five years from date of closing.

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