Frontier Diamonds Limited (ASX:FDX) announced a private placement unsecured redeemable convertible loan notes for gross proceeds of up to AUD 3,000,000 on March 21, 2018. The redeemable convertible loan notes will mature on October 31, 2019 and will carry a coupon interest of 10% per annum payable quarterly in arrears. The note holders will be given right to participate pro-rata in a royalty pool calculated as 8% payable on the gross proceeds of the first 100,000 tonnes processed from the Bellsbank Pit bulk sample. The conversion price of the notes is set at the lower of a 10% discount to the company’s 10-day volume weighted average price or the face value of AUD 0.20. The company will bear issuance cost of AUD 240,000 in connection with the transaction.