Silver Bullet Mines (SBMI.V) will process mineralized material from the Columbia/Gold Queen Complex in Arizona rather than from the King Tut Mine, after extensive field work over roughly the past two quarters, it said Wednesday.
The company believes the Columbia/Gold Queen Complex has the capability to consistently produce the tonnage needed to fulfill the desired tonnage ordered by Ocean Partners USA.
Silver Bullet also intends to complete a convertible debenture financing with various parties, in the amount of C$670,000.00 to enable further development of the Columbia/Gold Queen and for general working capital needs.
The three-year debenture issue, which include 6.7-million warrants, would be convertible at the option of the holder at C$0.12. The interest rate on the debenture is 12% per year, payable in arrears in cash or shares from treasury at the option of the company, it said.
The warrants are exercisable at C$0.16 and does not have an acceleration clause.
The company's shares last traded Aug. 21, closing at C$0.14 on the TSX Venture Exchange.