Norsemont Announces First Tranche Closing of Convertible Debenture Financing

Core Viewpoint - Norsemont Mining Inc. has successfully closed the first tranche of its non-brokered private placement, raising US$7,529,000 (approximately CAD$10,375,715) through the issuance of unsecured convertible debenture units and warrants, which will support its upcoming drill program and production strategy for the Choquelimpie project [1][2]. Financing Details - The first tranche of the Offering involved the issuance of US$7,529,000 in principal amount of Convertible Debentures and 6,035,258 Warrants, resulting in total gross proceeds of US$7,529,000 (approximately CAD$10,375,715) [1]. - The terms of the Offering have been amended to allow for gross proceeds of up to US$10,000,000 (approximately CAD$13,794,400), with a 30% over-allotment option [2]. Use of Proceeds - Proceeds from the Offering are intended for general working capital, mineral exploration, and advancing the Choquelimpie gold-silver-copper project [3]. Convertible Debenture Unit Structure - Each Convertible Debenture Unit consists of one convertible debenture with a principal amount of US$1,000, convertible into common shares at a price of CAD$0.86, and includes 802 transferable common share purchase warrants, each allowing the purchase of one common share at CAD$1.00 for three years [4]. - The Convertible Debentures carry an interest rate of 5.25% per annum and have a maturity date of three years from the closing date [4]. Project Overview - Norsemont Mining owns a 100% interest in the Choquelimpie project, which has an indicated mineral resource estimate of 1,731,000 gold ounces and 33,233,000 silver ounces, along with an inferred mineral resource of 446,000 gold ounces and 7,219,000 silver ounces [10]. - The Choquelimpie project is a past-producing mine with significant existing infrastructure, including roads, power, water, camp, and a 3,000-tonne-per-day mill [10].