American CuMo Mining Corporation (TSXV:MLY,OTCQX:MLYCF) announced a financing to raise up to US$3,000,000, at a price of US$1,000 per unit. Each unit will consist of a US$1,000 non-transferable unsecured convertible debenture of the Company and 1,500 non-transferable common share purchase warrants.
As quoted in the press release:
Each Convertible Debenture has a term of 5 years, bears an interest rate of 8.5% per annum, with interest payable on a semi-annual basis, and is convertible into common shares of the Corporation at a price of US$0.3333 per common share. Each Warrant will entitle the holder to purchase one additional common share of the Corporation (a “Warrant Share”) for a period of five years at a price of US$0.40 per warrant Share. The company has the right to buy back the convertible portion at any time and the subscriber keeps the warrant.