LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - September 20, 2019

Fedís Gold-Bull Impact
By: Adam Hamilton, Zeal Research

GoldSeek Radio Nugget: Michael Pento Ph.D.
By: Chris Waltzek Ph.D., GoldSeek Radio

Panicky Fed Flooding Overnight Markets with Cash
By: Mike Gleason

Semiconductor Sector; a Market & Economic Leader
By: Gary Tanashian, NFTRH

Gold Consolidates As The Fed Loses Control
By: Stewart Thomson, Graceland Updates

Precious Metals Update Video: Gold consolidating, watching recent lows
By: Ira Epstein

Serious Inroads, But Still Unfinished Business
By: Ted Butler

A Message to My Former Colleagues at Overstock
By: Patrick Byrne

Repo Rates And Gold: Something Big Is Happening
By: Dave Kranzler


GoldSeek Web

Inca One arranges $5.5-million bond financing for Chala

 -- Published: Tuesday, 20 May 2014 | Print  | Disqus 

Mr. Edward Kelly reports


Inca One Resources Corp. has arranged a non-brokered private placement of bonds in the amount of $5.5-million.

In addition, the subscriber of financings has the first right of refusal to purchase up to $15-million in future debt or equity financings of the company.

Highlights of the financing include the following:

  • Funds to increase throughput at Chala by 400 per cent;
  • Completion expected by the fourth quarter of 2014;
  • Secures first right for additional $15-million in equity or debt financing.

The net proceeds of the financing will be used to expand milling operations and increase throughput at the Chala mill to 100 tonnes per day by the fourth quarter 2014, an increase of 400 per cent. The financing covers inventory ore purchase, plant upgrades, sustaining capital plus general and administrative expenses. Construction and upgrades will continue after the financing closes.

"This financing enables Inca One to make the necessary mill improvements to rapidly increase production and cash flow, with minimal dilution to our shareholders and very manageable repayment," said Edward Kelly, president and chief executive officer of the company. "We are very pleased to have sourced financial partners that share in our vision of growth and opportunity in Peru. We are thankful for the support of the Peruvian government, and will continue to work closely with them and lead by example during this formalization process of small-scale mining and milling operations."

Bond binancing

The company's wholly owned subsidiary will issue a three-year bond in the amount of $5.5-million in connection with the bond financing. The bond will bear interest at a rate of 10 per cent per annum, calculated and payable quarterly in arrears commencing no later than six months from the date of issue. The bond will be issued in two tranches, with $2.7-million issuable at the initial closing and $2.8-million issuable at the subsequent closing, which is expected to close on June 30, 2014.

In connection with the bond financing and as partial consideration for the subscription by the purchaser of the bonds, the company and the purchaser will enter into a financing fee agreement whereby the company and the subsidiary will provide the purchaser a 3.5-per-cent financing fee on the net revenues from the company's Chala mill in Peru. The term of the financing fee agreement expires on Dec. 31, 2024, and may be extended for a maximum of 10 years, subject to certain adjustments and a right of repurchase in favour of the subsidiary. The subsidiary's obligations under the bond financing will also be secured by a general security agreement over the subsidiary's property, which will be guaranteed by the company.

A finder's fee of 8 per cent of the gross proceeds of the bond financing will be payable in cash by the company to SC Strategy Consult AG. The company will also issue to the finder that number of finder's warrants equal to 8 per cent of the bond proceeds, divided by the exercise price of 15 cents.

Closing of the bond financing is subject to the execution of definitive transaction documents and the approval of the TSX Venture Exchange.

We seek Safe Harbor.

© 2014 Canjex Publishing Ltd. All rights reserved.

| Digg This Article
 -- Published: Tuesday, 20 May 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.