Los Andes Closes $8 Million First Tranche of Private Placement
TSX VENTURE: LA
Vancouver, British Columbia--(Newsfile Corp. - December 9, 2016) - Los Andes Copper Ltd. (TSX.V: LA) ("Los Andes", or the "Company") is pleased to announce the closing of the first tranche of its non-brokered private placement announced in its News Release dated December 2, 2016, raising $8,040,000.
On December 8, 2016, the Company issued 26,800,000 units (the "Units") priced at $0.30 per Unit. Each Unit consists of one common share of the Company (a "Unit Share") and one detachable share purchase warrant (a "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. The Unit Shares, Warrants and Warrant Shares are subject to a hold period expiring on April 9, 2017.
Turnbrook Mining Ltd. ("Turnbrook"), the Company's largest shareholder, subscribed for the 26,800,000 Units and assigned its 26,800,000 Warrants to a third party. The sale of the Units to Turnbrook constituted a related party transaction under TSX Venture Exchange Policy 5.9.
The Company will continue to accept subscriptions over the coming weeks in respect of the 3,200,000 Units that remain available for purchase pursuant to the Private Placement.
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.