Can-Cal Resources Ltd. (OTCPK:CCRE) announced a non-brokered private placement of convertible debentures for gross proceeds of $500,000 on October 24, 2012. The debentures are unsecured and mature three years after the date of issue. The principal amount of the debentures shall accrue interest at a rate of 12% per annum, compounded and payable quarterly.

The principal amount shall be convertible in whole or in part at any time at the option of the holder until the maturity date at a conversion price of $0.20 per common share in the first year, at $0.35 in the second year and $0.50 in the third year. The company can redeem the debentures at any time following the date that is 18 months from issuance until the maturity date.