Pacific Road Resources Fund

June 13, 2012 09:41 ET

Pacific Road Resources Funds Announce Further Investment in First Bauxite Corporation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2012) - The Pacific Road Resources Funds ("PRRF") are pleased to announce that they have completed a subsequent $6,000,000 investment in First Bauxite Corporation (the "Company"). PRRF has acquired 11,320,755 Units (each a "Unit") pursuant to a private placement by the Company at a price of $0.53 per Unit. Each Unit consists of one common share and one half of a common share purchase warrant (each a "Warrant"). Each whole Warrant entitles the holder to purchase one common share in the capital of the Company at a price of $0.75 per common share for a period of three years following the closing date. Assuming full exercise of the Warrants issued by the Company to PRRF in connection with this private placement, the Units represent an approximate 21% interest in the Company's common shares.

After giving effect to the subscription and including the 1,807,229 common shares previously purchased by PRRF, assuming full exercise of the 903,614 common share purchase warrants previously held by PRRF and assuming full conversion of the non-interest bearing convertible notes ("Notes") in the aggregate principal amount of $8,000,000, which Notes are convertible into common shares of the Company at a price of $0.83 per common share, and further assuming that no other convertible securities of the Company are converted or exchanged, PRRF would hold 29,330,529 common shares of the Company, representing approximately 32% of the then outstanding common shares of the Company.

In addition, PRRF holds an option to purchase additional Notes from the Company in the aggregate principal amount of US$20 million (the "Second Tranche Notes") which will be convertible into common shares of the Company based on the formula as described in the joint press release issued on June 4, 2009. As the number of common shares issuable to PRRF is contingent, in part, upon future values and share prices, the number of shares that PRRF could acquire should it purchase the Second Tranche Notes and exercise its conversion rights in full cannot be determined at this time. However, based on the current minimum conversion price, PRRF would acquire a minimum of 16,612,903 additional shares (assuming a conversion price of CDN$1.24 and an exchange rate of US$1.00 equals CDN $1.03). Assuming full exercise or conversion of all securities held by PRRF on this basis and that no other convertible securities of the Company were converted or exchanged, PRRF would hold approximately 45,943,432 common shares of the Company, representing approximately 42% of the then outstanding common shares of the Company.

PRRF purchased the securities for investment purposes and may or may not purchase or sell securities of the Company in the future on the open market or in private transactions, depending on market conditions and other factors.

A copy of the early warning report filed in connection with the investment is available on the Company's profile on SEDAR at www.sedar.com or may be obtained by contacting Greg Dick at +61 2 9241 1000.

About Pacific Road Resources Funds and Pacific Road Capital Management Pty Limited

The Pacific Road Resources Funds are private equity funds investing in the global mining industry. They provide expansion and buyout capital for mining projects, mining related infrastructure and mining services businesses located throughout resource-rich regions of the world. The Pacific Road Resources Funds are managed and advised by Pacific Road Capital Management Pty Ltd ("PRCM"). The PRCM team, located in Sydney, Australia, San Francisco and New York, USA, is comprised of experienced mining investment professionals that have extensive knowledge and experience in the mining and infrastructure sectors, including considerable operating, project development, transactional and investment banking experience. For further information on the Pacific Road Resources Funds and PRCM, please go to their website at www.pacroad.com.au.

Contact Information

  • Pacific Road Resources Fund
    Greg Dick
    +61 2 9241 1000