Ann: $600,000 Issue of Convertible Notes-NAG.AX, page-3

Somebody thinks these shares are worth at least 18c

$600,000 ISSUE OF CONVERTIBLE NOTES
Nagambie Resources Limited (ASX: NAG) is pleased to announce that it has received firm commitments from sophisticated and professional investors for the placement of 3,333,333 Series 5 unsecured convertible notes with a face value of $0.18. An Appendix 3B will be lodged with the ASX upon the issue and allotment of the convertible notes.

The funds raised will add to working capital and increase the Company’s flexibility to take advantage of additional opportunities that may arise. Principal terms for the Series 5 unsecured convertible notes include:
 Issue price of 18.0 cents per note;
 5-year term;
 10% per annum interest rate payable every 6 months;
 Notes are convertible at any time within the 5-year term at the option of the noteholder into Nagambie Resources fully-paid ordinary shares on a 1 for 1 basis; and
 Notes are redeemable at 18.0 cents per note after 5 years if not previously converted. 11,575,000 remaining Series 2 convertible notes with a face value of $0.04 ($463,000 in total), due to expire on 2 September 2016, were all converted 1:1 into fully paid ordinary shares in the Company on 1 September 2016. As a result, before the issue of the Series 5 convertible notes, Nagambie Resources has 367,879,776 fully paid ordinary shares, 39,969,447 unlisted convertible notes (all in-the-money) and 39,050,000 unlisted options (37,050,000 in-the-money). The issue of 3,333,333 new convertible notes therefore represents dilution, on an in-the-money diluted basis, of only 0.75%.
When the price of 18.0 cents was set for the Series 5 convertible notes, the ASX trading price for the fully paid ordinary shares was 12.0 cents. That is, the issue price for the notes was set at a 50% premium to the share price.

Just love the last bit