UPDATE 1-Crowflight shareholder to get debentures worth C$10 mln

* To appoint 3 board members recommended by King Place

* Says to pay interest rate of 10 pct annually

Nov 29 (BestGrowthStock) – Canadian junior nickel miner Crowflight
Minerals Inc (CML.TO: ) 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. [ID:nSGE6900FO]

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)
([email protected]; within U.S. +1 646 223 8780;
outside U.S. +91 80 4135 5800; Reuters Messaging:
[email protected]))

UPDATE 1-Crowflight shareholder to get debentures worth C$10 mln