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Cardero Resource (TSX:CDU,NYSEMKT:CDY,FWB:CR5) successfully completed a private placement financing of Senior Secured Notes to raise net proceeds of $5,077,000 (USD 5,000,000). The Company also announced that Cardero Coal Ltd. exercised its option to acquire the shares of a private company that holds 4 coal licenses which form part of the Carbon Creek Metallurgical Coal Project.
As quoted in the press release:
Cardero Coal Ltd. exercised its option to acquire the Shares on April 22, 2013. Consideration for the exercise was payment of total consideration of cash in the amount of $5,000,000 (of which $2,000,000 had been previously paid and $3,000,000 was paid on the exercise of the option) plus the issuance by the Company of 400,000 common shares of Cardero to the optionor.
The Company has completed a placement of senior secured notes (“Notes”) in the aggregate principal amount of USD 5,500,000 with certain affiliates of Luxor Capital Group, LP. The Notes were issued on April 22, 2013, have a one year term and were issued at a 9.1% discount to net the Company USD 5,000,000 ($5,077,020) with interest accruing at the rate of 10% per annum, payable semi-annually (13% after an event of default). The Notes are secured by a general security agreement over the assets of the Company, as well as a specific pledge of the shares of Cardero Coal Ltd. Cardero Coal Ltd. also provided a corporate guarantee.
Click here to read the Cardero Resource (TSX:CDU,NYSEMKT:CDY,FWB:CR5) press release
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