James Bay Resources Limited (CSE:JBR) announced a non-brokered private placement of unsecured convertible debentures for gross proceeds up to CAD 1,850,000 on April 16, 2015. Each unsecured convertible debenture shall bear fixed interest at a rate of 15%, payable semi-annually and have a maturity date of three years from the date of issuance. If the litigation is settled or is subject to a final decision with funds received by the company prior to the maturity date, the holders will have the right to demand payment in full of all mounts owing. In the event, the company would be left with less than CAD 1,000,000 in free cash upon such a demand occurring, the amount payable to each holder will be reduced pro-rata to ensure that the company retains CAD 1,000,000 in free cash.

Each unsecured convertible debenture is convertible in whole or in part, at an option of the holder into common shares at fixed conversion price of CAD 0.17 per share. The interest payable may also be converted into common shares at a market price at the date of any such conversion, at the option of holders. Any conversion of unsecured convertible debentures and interest accrued on unsecured convertible debentures into common shares will be subject to all required approvals by the company. The unsecured convertible debentures may be prepaid by the company at any time without penalty, on at least 15 days notice to the holders. The company expects to close the transaction over a series of tranches, with the final tranche to close on or before May 31, 2015.