Great Lakes increases debenture offering to CAD$950k, looking for CAD$100k

Great Lakes Graphite yesterday announced that it would increase the size of its debenture offering by CAD$100k to CAD$950k, which will be used to complete the recommissioning of its Matheson Micronization Facility.

The firm last week announced that it had secured at least CAD$830,000 in funding from private investors. The company said it would now be increasing the size of the funding “to accommodate additional demand.”

In an announcement, the company said it would pay 7% cash commission and 7% finder warrants on this additional CAD$100k, and say that financing is scheduled to close on 20 October 2015. It stressed that it did not pay an fees or commissioning on the financing announced last week.

“Upon completion of this financing, the Company will be positioned to complete the remaining work on the Matheson Micronization Facility and to bring the plant through commissioning and into commercial operation,” said Paul Gorman, CEO of Great Lakes Graphite, last week.

The firm said an interest rate of 8.5% per annum would be paid on this financing, which will be accrued and paid on 15 September 2019. The offering also includes a 4 per cent gross overriding royalty of the first CAD$90 million in revenue produced from the Matheson facility.

The company also confirmed the principal amount under the debentures could be converted into common shares at a conversion price of $0.10 per share. In addition, the lenders will be issued warrants with each warrant exercisable into a common share at a price of $0.10 per share until 15 September 2019.

Earlier this month Great Lakes announced it had terminated financing discussions with Benton Capital Group. The companies had previously been in negotiations over $800k in financing in exchange for a 10% gross overriding royalty on the sale of micronized flake graphite from the Matheson facility.

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