Troubadour Resources (TROUD) plans concurrent non-brokered private placements of up to $950,000, comprising a unit offering of up to $500,000 and an unsecured convertible debenture offering of up to $450,000.
The Unit Offering comprises up to 5,555,555 units at $0.09 per Unit, each with one common share and a warrant exercisable at $0.12 for 36 months, with a 9.9% ownership cap per subscriber. The Debenture Offering comprises up to $529,412 principal amount of debentures issued at a 15% discount ($850 per $1,000), maturing in three years, bearing 20% annual interest (rising to 24% on default), and convertible at $0.12 into units with a share and a warrant at $0.14 for five years, also subject to a 9.9% cap.
Debentures are not prepayable for two years, carry 110% call terms thereafter and a 125% change-of-control put. Net proceeds will fund working capital and corporate purposes, and the offerings require TSX Venture Exchange acceptance.
Troubadour Resources (OTC:TROUD) is reallocating exploration capital from its Senneville project in Quebec to its 100%-owned Amarillo Copper Project in southern British Columbia. Previous drilling confirmed a multi-phase alkalic porphyry system with anomalous copper and precious metals, and new VTEM data defines untested targets.
The company will allow the Senneville option to lapse and is planning an aggressive exploration program at Amarillo. Troubadour also elected to adopt semi-annual financial reporting under Blanket Order 51-933, aiming to reduce administrative and financial reporting costs.