Argex Titanium Inc. (TSX:RGX) announced today that it has closed a brokered private placement of unsecured convertible debentures of Argex for gross proceeds of $7.5 million. Euro Pacific Canada Inc. acted as the lead agent and sole bookrunner for the Private Placement.

As quoted in the press release:

The rate of interest on the Debentures is 8% per annum. Interest on the Debentures shall be paid quarterly in arrears from September 30, 2014 and thereafter at the end of each quarter and on the maturity date, which is June 30, 2019 (the “Maturity Date”). The Debentures are convertible into common shares of the Corporation (“Common Shares”) until the Maturity Date at the option of the debenture holder at a conversion price of $1.14 per Common Share (the “Conversion Price”); this represents a conversion rate of approximately 877 Common Shares per $1,000 principal amount of Debentures. The Corporation will use its best efforts to list the Debentures on the Toronto Stock Exchange after expiration of the four-month hold period, on October 31st, 2014.

Argex CEO, Roy Bonnell, said:

I am very pleased that we were able to close this Private Placement quickly and efficiently. The funds raised in this financing will propel the Corporation to the next level. Of significance, a majority of Argex Board members participated in this Private Placement and we are highly encouraged by the support of our largest shareholder who invested $2 million.

Click here to read the Argex Titanium Inc. (TSX:RGX) press release