Roscan Gold arranges $1.5-million note financing

Executive Summary

• Roscan Gold Corp. has entered into a binding term sheet for a fully subscribed private placement of secured convertible notes totaling C$1.5 million.
• The financing includes a 12% coupon over a one-year term and allows conversion into common shares at a price of C$0.20 per share.
• Gross proceeds are designated for general working capital purposes, subject to regulatory approvals and security grant approval from Osisko Gold Royalties Ltd.

Key Details

• Transaction Structure: Private placement of secured convertible notes.
• Total Amount: Fully subscribed C$1.5 million.
• Interest Rate: 12% coupon.
• Term: One year.
• Conversion Price: C$0.20 per common share.
• Conversion Rights: Convertible in whole or in part at the option of the noteholder at any time prior to the close of business on the earlier of: (a) the business day prior to the maturity date; or (b) the business day prior to any date set for redemption or repurchase.
• Interest Payment: Accrued and unpaid interest is paid in cash up to, but excluding, the date of conversion.
• Use of Proceeds: General working capital purposes.
• Conditions Precedent: Subject to customary closing conditions and approvals from applicable securities regulatory authorities, including the TSX Venture Exchange.
• Security Approval: The grant of security is subject to approval by Osisko Gold Royalties Ltd.
• Hold Period: All securities issued are subject to a hold period of four months plus one day from the date of issuance, plus applicable resale rules.

Notable Quotes

• None provided in the text.