Advanced Explorations (OTC Other: ADEXF; TSX-V: AXI) has entered into an agreement with XinXing Ductile Iron Pipes Co. Ltd. (“XinXing”) involving a $5,000,000 convertible debenture. This financing follows the execution by the Company and XinXing of the previously disclosed Framework Agreement in 2010, providing for the completion of feasibility assessments to bring the Company’s Roche Bay project to commercial operation.
The Debenture will be non-interest bearing, have a term of 24 months from the date of initial advance of funds, and be convertible prior to maturity and repayment at any time in whole or from time to time for common shares at a conversion price of $0.45 per common share. If fully converted, the Debenture would result in the issuance of 11,111,111 common shares.
The proceeds from the Financing will be used for advancing AEI’s Roche Bay Feasibility Project and other general corporate purposes.