Mustang Resources Limited (ASX:MUS) announced a private placement of a multi-tranche convertible note facility for gross proceeds of AUD 19,950,000 on January 8, 2017. The transaction will include participation from returning investor, Arena Investors, LP. The company will raise funding through seven tranches. The company will receive AUD 1,900,000 in the first tranche, AUD 3,800,000 in the second tranche in May 2018, and AUD 14,250,000 in five further tranches of AUD 2,850,000 over two years, subject to shareholders’ approval. Each tranche will have a term of 18 months. The notes have principal value of AUD 21,000,000 and will be issued at discount amounting to 95% of the face value. The convertible notes will bear interest at 11% per annum accruing on monthly balances and are payable in cash or shares with tranche one interest payable in cash only. The notes are convertible at variable strike prices based on the lowest 1-day volume weighted average price of the 20 trading days prior to conversion. First tranche is subject to a floor price of AUD 0.0018 per share. Upon conversion, the company may choose to either deliver shares or cash equal to the value of the shares.