* Says to pay interest rate of 10 pct annually
Nov 29 (Reuters) - Canadian junior nickel miner Crowflight Minerals Inc said it would issue convertible debentures worth C$10 million to its largest shareholder King Place Enterprises Ltd.
The company said it proposes to appoint Myles Gao, Michael Hibbitts and John Pan of King Place to the board, facilitated by resignations of Stan Bharti, Maurice Colson, Bruce Humphrey and Bernie Wilson.
The company intends to use the proceeds to pay outstanding accounts and as capital expenditure for the re-starting operations at the Bucko Lake mine.
In October, the company had said it would temporarily suspend work at Bucko Lake mine in Manitoba to restructure operations, and there would be no production in the fourth quarter.
The secured debenture will mature in six months from the date of issue and will have an interest rate of 10 percent per annum, Crowflight said in a statement.
King Place shall be entitled to convert the secured debenture into common shares of Crowflight.
The conversion will be at a price equal to the five-day volume-weighted average price at the time of conversion, minus the maximum discount allowed under Toronto Stock Exchange regulations.
Crowflight Minerals shares, which have lost about 17 percent in value since it reported a wider third quarter loss, slipped as much as 7 percent to 70 Canadian cents on Monday on the Toronto Stock Exchange.
(Reporting by Aftab Ahmed in Bangalore; Editing by Prem Udayabhanu)
(aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))
Keywords: CROWFLIGHT/
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