Trading Symbol: TSX-V: VVV
CALGARY, April 20 /CNW/ - Vannessa Ventures Ltd. (the "Company")
announces that it has agreed to complete a non-brokered private placement of a
C$3 million unsecured convertible note (the "Note") with Auro Investments Pty
Ltd. ("Auro"), a private company associated with Steven G. Dean. The Note
matures two years after its date of issue, bears interest at 8%, payable at
maturity and is convertible at any time up to maturity into units of the
Company at $0.41 per unit (a "Unit"). Each Unit comprises one share and one
half of one common share purchase warrant (a "Warrant") and each Warrant is
exercisable to acquire one share of the Company at $0.45 per share for a
period of two years after the date of issue of the Note. The Issuer has the
right to prepay the Note at any time after one year after its date of issue,
subject to Auro's right to convert before prepayment. The Note will include
negative covenants, events of default and conversion right adjustment
provisions that are standard for transactions of this nature. A cash finders
fee of 3% of the principal amount of the Note will be paid.
Auro has also agreed to subscribe for $2 million in units of the Company
under the private placement of the Company announced April 18, 2007.
In conjunction with this financing, Mr. Dean will be joining the
Company's Board of Directors and will assume the position of Chairman. Mr.
Dean has extensive experience in the gold mining business, including serving
as President of Teck Cominco Ltd. to July 2002. He was also the Executive
Director and Chief Financial Officer of the Australian gold group Normandy
Mining Ltd. from 1987 to 1994.
Mr. Dean is based in Vancouver and is a director and Chairman of a number
of public companies, is a Fellow of the Institute of Chartered Accountants of
Australia, a Fellow of the Australian Institute of Mining and Metallurgy and a
Member of the Canadian Institute of Mining, Metallurgy and Petroleum.
The issue and sale of the Note is subject to acceptance of the TSX
John Morgan, President
VANNESSA VENTURES LTD.
"The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release."
For further information:
For further information: VANNESSA VENTURES LTD., 220, 1010 - 1 St. S.W.,
Calgary, Alberta, T2R 1K4, Telephone: (403) 444-5191