The principal amount of the Debenture will mature on September 9, 2015 (the "Maturity Date") and accrue interest at 8% per annum payable on the Maturity Date.
At any time after the date that is six months after issuance of the Debenture, the Company may convert all or any part of the principal amount outstanding under the Debenture into common shares in the capital of the Company (each, a "Share") at a conversion price of $0.10 per Share and any accrued but unpaid interest thereon at the greater of $0.10 per Share and the Market Price (as defined in the policies of the TSX Venture Exchange) at the time of conversion.
The proceeds of the Offering are expected to be used by the Company for the exploration program on the Company’s Hawk Ridge Project.
The securities issued under the Offering are subject to a hold period expiring on January 10, 2015.
Sinotech is a wholly-owned subsidiary of Sinotech Minerals Exploration Co., Ltd. ("Sinotech Minerals Exploration").
Sinotech Minerals Exploration is a majority owner of Beijing Donia Resources Co., Ltd., which wholly-owns Goldrock Resources Corporation Limited ("Goldrock"). Goldrock and Sinotech, together, own 23,271,860 common shares of the Company (15,271,860 common shares for Goldrock and 8,000,000 common shares for Sinotech), representing approximately 35.4% of the issued and outstanding common shares of the Company.
In addition, Goldrock and Sinotech, together, own common share purchase warrants to purchase up to 10,375,000 common shares of the Company (6,375,000 common shares for Goldrock and 4,000,000 common shares for Sinotech).
