VANCOUVER, July 26, 2013 /PRNewswire/ - Golden Queen Mining Co. Ltd. (TSX: GQM) is pleased to announce that further to its news release dated July 25, 2013, it has completed the private placement of convertible debentures for aggregate proceeds of C$10,000,000. The convertible debentures are unsecured, and bear interest at 2% per annum payable annually. The principal amounts of the convertible debentures are convertible into shares of the Company at a price of C$1.03 per share for a period of two years. If the convertible debentures have not been converted by the holder prior to the maturity date, then the Company or the holder may convert them at the lower of C$1.03 or the market price as at the maturity date. The market price on the maturity date will be determined based on the volume weighted average price of the shares as traded on the Toronto Stock Exchange for the five trading days preceding the maturity date. C$7,500,000 of the convertible debentures was acquired by an investment vehicle managed by Thomas M. Clay, a Director and insider of the Company.
The proceeds of the offering are allocated exclusively to the advancement of the Company's Soledad Mountain Project, including towards funding initial project construction requirements that are currently ongoing. No finder's fees or commissions were paid in connection with the private placement.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, or unless an exemption from such registration is available.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
SOURCE Golden Queen Mining Co. Ltd.