Callinan Royalties Corporation has entered into an agreement with Gold Royalties Corporation whereby Callinan will provide C$5.4 million to Gold Royalties Corporation (“GRC”) via a convertible debenture.
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The convertible debenture will carry an interest rate of 10% per annum and mature on July 30, 2016…
At Callinan’s option and at any time before or on the maturity date, Callinan has the right to convert the principal and accrued interest to 60% of the royalty interests or into share units of GRC comprised of 1 common share of GRC at$0.80 and 1 warrant priced at $1.20. The accrued interest will be converted into shares issued at market price.
If neither conversion option is exercised by Callinan, the full principal and interest will be repaid in cash. In addition, GRC will hold an early repayment option for $8,600,000 after offering Callinan the right to convert the loan to shares.
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