Aris Mining Corp (ARMN)

[geodan]

The key terms being offered include:

Each Unit will consist of US$1,000 principal amount of senior secured gold-linked notes (the “Notes”) and 124 common share purchase warrants (the “Warrants”) of the Company. Each Warrant will have an exercise price of CA$2.20 per warrant and will entitle the holder to purchase one common share at any time prior to the maturity of the Notes. Subject to minimum listing requirements, the Company will take commercially reasonable efforts to have the Warrants listed.

The net proceeds of the Offering will be used for (1) the redemption in full, at par, of the Company’s (a) Senior Unsecured Convertible Debentures due 2018, (b) Senior Secured Convertible Debentures due 2020 and (c) Senior Secured Convertible Debentures due 2024 (the securities referred to in (a), (b) and (c), collectively, the “Outstanding Debentures”) and (2) general corporate purposes.

The Notes will have an eight-year term and are non-callable for the first three years.

The Notes will represent senior secured obligations of the Company, ranking pari passu with all present and future senior indebtedness and senior to all present and future subordinated indebtedness of the Company. Standard high yield covenants consistent with transactions of this nature will apply.

The Notes will bear interest at 8.00% per annum, paid monthly.

The above indicates only about 15% dilution at 15% lower prices than today! And only paying 8% interest. Many posters (not recent ones) here said it would be impossibly to pay old debt off, well just about done and at great rates.


Excellent terms, GCM now deserves normal valuation. What is normal valuation? Next post.