Canaccord Capital (Europe) Limited has sold to investors outside Canada on the Namibian’s behalf six million of the company’s common shares at a price of $1.375 (U.S.) for proceeds of $8.25-million (U.S.) and $2-million (U.S.) principal amount of 8-per-cent Series A convertible debentures for gross proceeds of $10.25-million (U.S.).
The financing is subject to regulatory filings and approvals, shareholder approvals, and definitive documentation and due diligence, all of which is expected to occur in March, 2001.
Last month Namco announced that its NamSSol seabed crawler had been damaged in an accident during mining operations on the seabed. Replacement and repairs are estimated to take approximately five months. While the company is pursuing its insurance claims, additional working capital is required to strengthen its financial position.
Meanwhile, the company is seeking to meet its immediate working capital requirements through arrangement of a $10-million (U.S.) bridging facility pending completion of the above financing.
The company’s new higher capacity Nam 2 seabed crawler continues to commission well in Mining Licence 36. Nam 2 is expected to produce the principal part of the company’s diamond production this year.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
