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Client Work

Kazax Minerals closes C$3.2 million financing through private placement

Fasken
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Client

Kazax Minerals Inc.

Fasken Martineau advised TSX-V listed Kazax Minerals Inc. (“Kazax”), on its non-brokered private placement of convertible unsecured non-interest bearing debentures for aggregate proceeds of C$3,200,000. The debentures will mature on July 14, 2017. Upon receipt of all necessary approvals from the Kazakh Ministry of Industry and New Technologies, and approval by the requisite majority of shareholders of the company, the principal amount of the debentures will be converted into units of the company, provided however that the debentures will only be converted into units where such conversion would not result in a reduction in the existing percentage of common shares of the company held by persons other than insiders or their associates and affiliates and not subject to resale restrictions. Each unit will consist of one common share of Kazax and one half of a common share purchase warrant. The conversion of the debentures into units shall be at a conversion price of: (i) C$0.05 per unit if conversion occurs within the first year of issuance; and (ii) C$0.10 per unit if conversion occurs within the following two years. Each whole warrant will be exercisable to purchase one additional common share of Kazax at an exercise price of C$0.10 for a period of three years from the date of issuance of the debentures. Kazax is a TSX-V listed mining corporation based in Astana, Kazakhstan. The company is a recently re-capitalised mining corporation with a holding an interest in its first iron ore bearing property, the Lomonosovskoye deposit in Kostanay, Kazakhstan. The proceeds of the private placement will be used for general working capital purposes. Fasken Martineau advised Kazax with a team that included Al Gourley and Jodi Katz.

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