The notes were issued at a purchase price of 94 per cent of the principal amount, the company said in a press release late Thursday, generating net proceeds of $159,000. The notes will mature on February 28, 2014, and include a general security interest over the assets of the company.
Latin American can repay the principal amount, at its discretion, at any time prior to the maturity date. The company said the new funds will be used for general working capital.
The mineral exploration company has also announced it has received regulatory approval for a one year extension for 4.98 million purchase warrants at a price of 20 cents apiece, until September 10, 2014. It has also received a one-year extension for 4.7 million purchase warrants at 30 cents apiece, until October 5, 2014.
Latin American Minerals holds its core projects in Paraguay. The company currently generates positive cash flow with the sale of gold dore from trench and open pit bulk sampling activities at its fully permitted Independencia Mine pilot plant, located on the large 15,020 hectare Paso Yobai gold project.
It also has a second important discovery in the region at its Itapoty diamond project, where 80 diamonds have been recovered to date. The company is exploring the 220,000 hectare property for the source rock of the diamonds.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.