Los Andes Seeks to Raise up to $9 Million
TSX VENTURE: LA
Vancouver, British Columbia--(Newsfile Corp. - December 2, 2016) - Los Andes Copper Ltd. (TSXV: LA) ("Los Andes", or the "Company") is pleased to announce that it intends to raise up to $9 million in gross proceeds from a non-brokered private placement (the "Private Placement").
The Company is arranging for the sale of up to 30,000,000 units (the "Units") priced at $0.30 per Unit, with each Unit consisting of one common share of the Company (a "Unit Share") and one detachable share purchase warrant entitling the holder thereof to purchase one additional common share of the Company (a "Warrant Share") at a price of $0.45 per Warrant Share for a period of 3 years. Turnbrook Mining Ltd. ("Turnbrook"), the Company's largest shareholder, has committed to purchase 26,800,000 units for a total amount of $8,040,000.
The proceeds of the Private Placement will be used to fund a proposed work program on the Company's Vizcachitas project and for general working capital purposes.
The Private Placement is subject to acceptance by the TSX Venture Exchange ("TSXV"). The sale of Units to Turnbrook constitutes a related party transaction under TSXV Policy 5.9. The Company intends to close the Private Placement by the end of next week as Turnbrook has advised that its financing commitment is of limited duration.
The Unit Shares and Warrant Shares will be subject to a hold period of four months from the date of issuance of the Units, in accordance with applicable Canadian securities laws.