Closes $5,000,000 Convertible Debenture Financing
Toronto, Mar 13, 2012 AEST (ABN Newswire) - Advanced Explorations Inc. (
CVE:AXI) announces that it has closed its non-brokered private placement financing (the "Financing") of a $5,000,000 principal amount convertible debenture (the "Debenture") involving strategic partner XinXing Ductile Iron Pipes Co. Ltd. ("XDIP") and its wholly-owned Hong Kong based subsidiary, XinXing Pipes (Hong Kong) Co. Ltd. ("XDIP HK"), previously announced on October 31, 2011 and updated January 9, 2012.
XDIP HK is a specific purpose, wholly-owned Hong Kong based subsidiary of XDIP established for the purpose of completing the Financing. In addition to serving as a platform for the successful completion of the Financing, XDIP HK will also help facilitate the development of the Roche Bay Iron Project.
Pursuant to the closing of the Financing, the Company issued the Debenture to XDIP HK which, if fully converted, will result in the issuance of 11,111,111 common shares in the capital of the Company (the "Common Shares").
The Debenture is non-interest bearing, has a term of 24 months maturing March 2, 2014 (the "Maturity Date"), and is convertible for Common Shares as per TSX regulations and subject to a minimum conversion price of $0.45 per Common Share (the "Conversion Price"). The Debenture may be converted, in whole or in part, into Common Shares any time prior to the Maturity Date at the Conversion Price.
All securities issued pursuant to the financing are subject to resale restrictions until August 1, 2012.
The Company also wishes to inform shareholders that in the near future it will provide updates on the progress of its feasibility study, its intended summer programs, and any partnering initiatives relating to both its Copper-Nickel and Tuktu iron ore projects.
ON BEHALF OF THE BOARD
John Gingerich, President & CEO
Contact
TEL: +1-416-203-0057 x226
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