Canada's Petaquilla Minerals Ltd (PTQ.TO: Quote) said it has negotiated a private placement of convertible senior secured notes of up to $40 million.

Each note in the principal amount of $1,000 is convertible into common shares at C$2.25 per share, the company said in a statement.

The notes, which will mature in two years, will bear interest at an annual rate of 15 percent.

In connection with the offering, the company also agreed to reduce the exercise price of its 23.84 million warrants to 65 Canadian cents per share from C$2.30 per share.

Under the revised terms, if the shares of the company trade at a weighted average price of C$1.00 or more per share for 30 consecutive trading days, the holders of the warrants must exercise the warrants within 30 days, the company said.

Shares of Petaquilla closed at 36.5 Canadian cents Thursday on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore, Editing by Dinesh Nair)

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