VANCOUVER, British Columbia, Feb. 26, 2018 (GLOBE NEWSWIRE) -- AbraPlata Resource Corp. ("AbraPlata" or the "Company") (TSX-V:ABRA) (OTC:ABBRF) (Frankfurt:1AH) is pleased to announce that the Preliminary Economic Assessment (“PEA”) of the Diablillos Ag-Au project is nearing completion and the Company expects to announce the results by the end of February 2018. The Company is also pleased to report that the contractual anti-dilution right (the "Anti-Dilution Right") held by SSR Mining Inc. (formerly Silver Standard Resources Inc.) ("SSR Mining") under the second amended and restated share purchase agreement dated March 21, 2017 (the "SSR Agreement"), which entitled SSR Mining to maintain a free carried 19.9% equity interest in the Company has now expired.
Hernan Zaballa, Chairman of AbraPlata, commented “Previously, AbraPlata was obligated to issue shares of the Company to SSR Mining each time we did an equity financing. Now that we have fulfilled the “Qualifying Financing” requirement associated with the purchase of Diablillos, SSR Mining will be required to pay for shares they receive in future financings. That will result in less dilution and more financing flexibility going forward, and we are pleased to have met this important milestone. Likewise, we look forward to achieving another major milestone in the near future when we announce the results of a PEA on Diablillos.”
Pursuant to the Anti-Dilution Right, previously whenever the Company issued common shares to third parties, it was obliged to issue additional common shares to SSR Mining, without payment, sufficient for SSR Mining to maintain a 19.9% equity interest in the capital of the Company. SSR Mining retains an equity participation right under the SSR Agreement which entitles SSR Mining to participate in future transactions in which the Company issues equity securities for cash or non-cash consideration. For example, if the Company intends to undertake an equity financing, SSR Mining will have the right to purchase, on the same terms as the equity financing, up to that number of equity securities as would result in SSR Mining maintaining, following the completion of the equity financing, the same equity interest it held immediately prior to the completion of the equity financing.
Likewise, if the Company intends to issue equity securities for non-cash consideration, or as a result of a consolidation, amalgamation, merger, arrangement, corporate reorganization or similar transaction or business reorganization resulting in a combined company (a "Non-Cash Transaction"), SSR Mining will have the right to subscribe for and purchase such number of equity securities as would result in SSR Mining maintaining, following the completion of the Non-Cash Transaction, the same equity interest it held immediately prior to the completion of the Non-Cash Transaction, for the cash equivalent of the consideration being received by the Company under the Non-Cash Transaction.
If SSR Mining fails to fully exercise its equity participation right in connection with any equity financing or Non-Cash Transaction, its equity interest in the Company will be diluted. SSR's equity participation right will expire upon SSR Mining's equity interest in the Company being less than 10% for any continuous period of at least 30 days. A copy of the SSR Agreement is available from the Company's profile on SEDAR (www.sedar.com).
AbraPlata is a junior mining exploration company focused on delivering shareholder returns by unlocking mineral value in Argentina. The Company's experienced management team has assembled an outstanding portfolio of gold, silver and copper exploration assets, and is focused on advancing its flagship Diablillos property, with an Indicated resource of 81.3m oz Ag and 755k oz Au, through the various stages of feasibility. In addition, AbraPlata owns the highly prospective Cerro Amarillo property with its cluster of five mineralized Cu-(Mo-Au) porphyry intrusions located in a mining camp hosting the behemoth El Teniente, Los Bronces, and Los Pelambres porphyry Cu-Mo deposits. Further exploration work is also planned for the Company’s Samenta porphyry Cu-Mo property, located south of First Quantum's TacaTaca project, as well as its Aguas Perdidas Au-Ag epithermal property.
ON BEHALF OF THE BOARD
ABRAPLATA RESOURCE CORP.
President and Chief Executive Officer
For further information concerning this news release, please contact:
|Willem Fuchter||Rob Bruggeman|
|President & Chief Executive Officer||Investor Relations|
|AbraPlata Resource Corp.||AbraPlata Resource Corp|
|Tel: +54.11.5258.0920||Tel: +1.416.884.3556|
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.