Los Andes Closes $2.5 Million First Tranche of Private Placement
TSX VENTURE: LA
Vancouver, British Columbia--(Newsfile Corp. - May 7, 2018) - Los Andes Copper Ltd. (TSXV: LA) ("Los Andes", or the "Company") is pleased to announce the closing of the first tranche (the "First Tranche") of its non-brokered private placement (the "Private Placement") announced in its news release dated April 26, 2018, for gross proceeds of $2,597,100.
On May 7, 2018, the Company issued 7,870,000 units (each, a "Unit") to Resource Capital Fund VI L.P. ("RCF VI") priced at $0.33 per Unit. Each Unit consists of one common share of the Company (a "Unit Share") and one-half of one transferable common share purchase warrant (each whole common share purchase warrant, a "Warrant"), with each Warrant entitling the holder thereof to purchase one additional common share of the Company (a "Warrant Share") at a price of $0.50 per Warrant Share for a period of 5 years. The Unit Shares, Warrants and Warrant Shares issued pursuant to the First Tranche are subject to a hold period expiring on September 8, 2018.
In connection with the First Tranche, RCF VI relinquished to the Company for cancellation 7,870,000 common share purchase warrants (issued pursuant to a private placement completed on December 8, 2016) (each, a "2016 Warrant"). RCF VI will relinquish the remaining 18,930,000 2016 Warrants to the Company for cancellation upon the closing of the second tranche of the Private Placement (the "Second Tranche").
The Second Tranche, which is expected to consist of the sale of 18,930,000 Units to RCF VI, is expected to close within 45 days of the date hereof for gross proceeds of $6,246,900. In the event that the Company is unable to close the Second Tranche, RCF VI shall retain the 18,930,000 2016 Warrants.
The proceeds of the Private Placement will be used by the Company to complete its technical work on the Company's Vizcachitas project, with a view to completing an updated resource estimate and an updated preliminary economic assessment in the coming months, as well as for general working capital purposes.
For more information please contact:
Antony Amberg, President & CEO
Tel: (56-22) 954-0450
Aurora Davidson, Chief Financial Officer
Certain of the information and statements contained herein that are not historical facts, constitute "forward-looking information" within the meaning of the Securities Act (British Columbia) and the Securities Act (Alberta) ("Forward-Looking Information"). Forward-Looking Information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend"; statements that an event or result is "due" or "may", "will", "should", "could", or "might" occur or be achieved; and, other similar expressions. The Forward-Looking Information in this news release includes, without limitation, statements in respect of the use of the proceeds of the Private Placement, the completion, and the timing therefor, of an updated resource estimate and preliminary economic assessment on the Vizcachitas project, the Company's ability to complete the Private Placement, including obtaining the necessary approvals in connection therewith, the size and the expected date for the closing of the Second Tranche and statements in respect of the cancellation of the 2016 Warrants. Forward-Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such Forward-Looking Information; including, without limitation, the receipt of TSXV approval, one or both of the closings of the Private Placement, the achievement and maintenance of planned production rates, the evolving legal and political policies of Chile, the volatility in the Chilean economy, military unrest or terrorist actions, metal and energy price fluctuations, favourable governmental relations, the availability of financing for activities when required and on acceptable terms, the estimation of mineral resources and reserves, current and future environmental and regulatory requirements, the availability and timely receipt of permits, approvals and licenses, industrial or environmental accidents, equipment breakdowns, availability of and competition for future acquisition opportunities, availability and cost of insurance, labour disputes, land claims, the inherent uncertainty of production and cost estimates, currency fluctuations, expectations and beliefs of management and other risks and uncertainties, including those described in Management's Discussion and Analysis in the Company's financial statements. Such Forward-Looking Information is based upon the Company's assumptions regarding global and Chilean economic, political and market conditions and the price of metals and energy, and the Company's production. Among the factors that have a direct bearing on the Company's future results of operations and financial conditions are changes in project parameters as plans continue to be refined, a change in government policies, competition, currency fluctuations and restrictions and technological changes, among other things. Should one or more of any of the aforementioned risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the Forward-Looking Information. Accordingly, readers are advised not to place undue reliance on Forward-Looking Information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise Forward-Looking Information, whether as a result of new information, future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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