This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Early Warning Requirements - Resource Capital Fund Acquires Additional Shares Of Avanti Mining Inc.

DENVER, CO, July 16, 2013 /CNW/ - Resource Capital Fund IV (" RCF IV") and Resource Capital Fund VI (" RCF VI") reports that on July 12, 2013, RCF IV, RCF VI, CEF Holdings Limited (" CEF"), Avanti Mining Inc. (" Avanti") and its wholly-owned subsidiary, Avanti Kitsualt Mine Ltd., entered into a loan agreement (the " Loan Agreement") in order to (i) restructure the US$20 million existing indebtedness of Avanti (the " Existing Loan"), US$10 million of which was loaned to Avanti by RCF IV and US$10 million of which was loaned to Avanti by CEF and (ii) provide Avanti with an additional US$10 million bridge loan (the " Additional Loan", together with the Existing Loan, the " Loans").  RCF VI advanced US$5 million of the Additional Loan to Avanti upon signing the Loan Agreement and will advance the remaining amount subject to the terms and conditions described in the Loan Agreement.  RCV IV and RCF VI are under common management by RCF Management LLC and are referred to herein together as " RCF".  RCF IV and RCF VI may acquire the following securities of Avanti in connection with the Loans:

Pursuant to the terms of the Loan Agreement, Avanti agreed to pay RCF IV an extension fee equal to 5% of the Existing Loan, or US$500,000, and to pay RCF VI an establishment fee equal to 5% of the Additional Loan, or US$500,000.  RCF IV and RCF VI each elected to receive these payments in common shares of Avanti (the " Fee Shares") to be issued on the earlier of December 31, 2013 or the completion of a rights offering by Avanti pursuant to the terms and conditions of the Loan Agreement.  The Fee Shares shall be issued at the maximum discount allowed under the policies of the TSX Venture Exchange (the " TSXV") to the volume weighted average price for Avanti's common shares on the TSXV for the twenty trading days prior to the date of determination.

In connection with the Loans, RCF IV and RCF VI were issued 5,000,000 and 10,000,000 common share purchase warrants of Avanti (the " Warrants"), respectively.  Each Warrant entitles the holder to acquire one common share of Avanti at an exercise price of C$0.08478 for a period of three years from the date of issuance.

Interest accrues on the Loans at a rate of 10% per annum, payable quarterly in arrears.  RCF may elect that Avanti pay accrued interest in common shares (the " Interest Shares").  The Interest Shares shall be issued at the volume weighted average price for Avanti's common shares on the TSXV for the twenty trading days prior to the interest payment date.

Pursuant to the Loan Agreement, if Avanti does not complete a rights offering on the terms and conditions set out therein by December 31, 2013, the Loans will automatically become convertible into common shares of Avanti (the " Conversion Shares").  The Conversion Shares shall be issued at C$0.07 per share.

Immediately prior to entering into the Loan Agreement, RCF owned and controlled 161,542,535 common shares of Avanti representing approximately 37.20% of Avanti's outstanding common shares. Assuming the exercise of the Warrants, and the issuance of the Fee Shares, the Interest Payment Shares and the Conversion Shares, each at an assumed issue price of C$0.07 and assuming C$1.00 equals US$1.00, RCF would own and control 357,142,857 common shares of Avanti representing approximately 48.45% of Avanti's outstanding common shares.

The securities of Avanti are being acquired by RCF for investment purposes.  RCF will evaluate its investment in Avanti from time to time and may, based on such evaluation of market conditions and other circumstances increase or decrease its shareholding in Avanti.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs