April 10, 2013
Duluth Metals Limited ("
Metals") ("Company") (TSX: DM) (TSX:DM.U)
today announced that the Company has closed its previously announced convertible debenture financing with purchasers including CEF (Capital Markets) Limited for CDN
aggregate principal amount of unsecured convertible debentures of Duluth Metals. The debentures mature
April 10, 2018
and bear interest at an annual rate of 7.5%. The debentures are convertible into common shares of the Company at a conversion price based on a 30% premium to the 20 day volume-weighted average price (VWAP) of the common shares at the close of trading on
March 28, 2013
. The 20 day VWAP is
and the conversion price is
The financing will be used to fund certain development expenses of the Twin Metals Project, the Company's continued exploration expenses on its 100% owned properties and for general corporate purposes. The Twin Metals Project is a large underground copper-nickel-palladium-platinum-gold mining development project in
and is a joint venture between the Company and
plc. The 100% owned exploration properties cover over 40,000 acres in close proximity to the Twin Metals Project and within the Duluth Complex.
The debentures have not been and will not be qualified for distribution to the public under the securities laws of any province or territory of
and may not be offered or sold in
, directly or indirectly, other than pursuant to applicable private placement exemptions.
About CEF (Capital Markets) Limited
CEF (Capital Markets) Limited is a wholly owned subsidiary of CEF Holdings Limited, which is owned 50% by
(Holdings) Limited and 50% by the Canadian Imperial Bank of Commerce ("CIBC").
(Holdings) Limited is the publicly-listed flagship company of the Cheung Kong Group of companies, the
based multi-national conglomerate with a combined group market cap in excess of
February 28, 2013
. CIBC is a leading North American financial institution with operations around the world. CEF Holdings Limited is an investor in significant resource assets on a global basis.
About Duluth Metals Limited