Global Metals Exploration (ASX:GXN) has announced the signing of a new capital raising and corporate advisory mandate with RM Corporate Finance.
RMCF has agreed to act as lead manager for the placement of a convertible note for a value of up to A$2.5M. This note will be convertible at a price of the lower of 0.5 cents per share or the 80% five day VWAP, with one or two options attached to acquire new shares of Global Metals at a price of A$0.003, exercisable until December 31 2016.
RM Corporate finance will receive a sign on fee of 50 million shares in Global Metals, and will receive a monthly retainer of A$6,000 and a capital raising fee of 5% (+ a 1% lodgement fee). So if Global Metals draws down A$50,000 every month, the total cost will be approximately A$9,000 to be paid to RMCF.
Shareholders are supposed to vote on this deal at a general meeting which will very likely be called during July.
> Click here to read the press release
Disclosure: The author holds a long position Global Metals Exploration. Global Metals is a sponsor of the website. Please see our disclaimer for current positions.
