Western Magnesium Corp. (TSX.V: WMG) announces a private placement of up to $3.75 million in unsecured convertible notes. The non-brokered private placement of a 15% unsecured convertible debenture in the principal amount of up to $3,750,000 will be convertible into shares of the Company’s common stock for five years from the closing date at USD$0.09. One company class A common stock purchase warrant will also be issued under the Convertible Debenture, exercisable at USD$0.17 for five years from the closing date for every Conversion Share issued.
The securities may not be issued until all necessary approvals, including that of the TSX Venture Exchange, are received. A statutory hold period of four months and one day will apply in Canada after the Closing Date. The securities have not been registered with the SEC. As a result of a statutory six-month hold period applicable to Regulation S of the Securities Act of 1933, as amended, they may not be sold until six months after the Closing Date. The Regulation S hold period prevails over the TSX Venture Exchange hold period. Working capital and commercialized pilot plant completion will be paid for using funds raised in the private placement.