Cline Mining Corp Misses $2.5 Million Bond Payment, Sends Stock Tumbling

The Financial Post reported that Cline Mining Corp missed a  $2.5-million payment  on Monday on $50-million of 10% senior secured bond, sending their stock tumbling 63 e

As quoted in the market report:

Most of the bonds are in Marret’s portfolios. Last February, Cline issued US$25-million of bonds to Marret “on behalf of certain investment funds which it advises.” The unrated bonds, which had a 10% coupon, had a two-year term, meaning they come due in February 2014. The financing was a mezzanine deal, as Marret was also issued with 1.25 million share purchase warrants that ran for three years and which were exercisable at $2.49. The net proceeds were intended to help Cline expand its New Elk mine (based in Colorado) to meet targeted production rates.

To view the whole Financial Post report, click here.