Each one in plain English, with the numbers worked through for a shareholder.
21 Mar 2016capital raising announcement▼ BadMajor
On March 16, 2016 the company signed a new equity line with River North Equity letting it sell up to $5,000,000 of shares through March 16, 2018, at 85% of a low-bid market price, in puts of $5,000 to $150,000 unless River North approves otherwise. It also issued River North two convertible notes: a $35,000 commitment note and a $90,000 bridge note (it received $81,000). Both carry 10% interest and mature March 16, 2017, and are convertible at 60% of the lowest recent bid. The terms are steeper discounts than the Southridge deals and could mean more dilution.
On August 1, 2014 the company issued 51 Series B preferred shares at $1.00 each to John F. Stapleton, who signs the filings as CFO. These shares carry about 51% of the voting power, but only on capitalization matters (such as share counts and reverse splits) and name changes. The shares are otherwise not entitled to vote and get no dividends. Ordinary shareholders keep their economic rights but could be outvoted on those matters.
On July 30, 2014 the company signed a second Equity Purchase Agreement with Southridge, allowing it to sell up to $1,900,000 of new shares through July 30, 2016, on the same terms as the 2011 deal (94% of market price, $500,000 cap per sale). The company has no obligation to sell. This follows the 2011 agreement, which was due to end July 11, 2014 (the filing does not say how much of it was used).
The company signed a life-of-mine agreement on March 10, 2014 to sell iron ore from the El Capitan property to Glencore AG, at an index price less a discount, paid by letter of credit. It also signed logistics and processing agreements with Logistica U.S. Terminals, effective February 28, 2014. Logistica is to fund costs and gets a share of iron ore profits, and the company must cover any loss on a sale from precious metals profits or otherwise. Logistica also paid the remaining $900,000 for an ore separation line, in return for a $400,000 note at 4.5% and shares issued under the 2005 plan. This is a new iron ore line next to the earlier precious metals work.
