AbraPlata Announces Private Placement
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VANCOUVER, British Columbia, Jan. 05, 2018 (GLOBE NEWSWIRE) -- AbraPlata Resource Corp. ("AbraPlata" or the "Company") (TSX-V:ABRA) (OTCQB:ABBRF) (Frankfurt:1AH) is pleased to announce that the Company intends to complete a non-brokered private placement of up to 7,500,000 units, each consisting of one (1) common share in the capital of the Company (a "Common Share") and one (1) common share purchase warrant (a "Warrant") (together, a "Unit") at a price of $0.20 per Unit for total gross proceeds of up to $1,500,000 (the "Financing"). Each Warrant will be exercisable for two years to purchase an additional common share at a price of $0.30 but will expire earlier if, for any ten (10) consecutive trading days on the TSX Venture Exchange (the "Exchange"), the closing price of the Company's common shares equals or exceeds $0.40.
Proceeds from the Financing will be used for continuing exploration on, and evaluation of, the Company's Diablillos property and its other mineral exploration properties in Argentina, payment of outstanding accounts payable, general and administrative expenses and working capital. Closing of the Financing is subject to the approval of the Exchange. In compliance with Canadian securities laws and the rules of the Exchange, all securities issued in connection with the Financing will be subject to a hold period of four (4) months. The Company expects to complete the Financing within 30 days.
SSR Mining Inc. (formerly Silver Standard Resources Inc.) ("SSR Mining") holds a contractual anti-dilution right (the "Anti-Dilution Right") entitling SSR Mining to maintain a 19.9% equity interest in the capital of the Company, under the second amended and restated share purchase agreement dated March 21, 2017 (the "SSR Agreement"). A copy of the SSR Agreement is available from the Company's profile on SEDAR (www.sedar.com). Completion of the Financing, and any subsequent exercise of the Warrants, will oblige the Company to issue additional common shares to SSR Mining pursuant to the Anti-Dilution Right sufficient for SSR Mining to maintain a 19.9% equity interest in the capital of the Company.
In connection with the Financing, the Company may pay a commission or finder's fees.
About AbraPlata
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.
"Willem Fuchter"
Willem Fuchter
President and Chief Executive Officer
For further information concerning this news release, please contact:
| Willem Fuchter President & Chief Executive Officer AbraPlata Resource Corp. Tel: +54.11.5258.0920 E-mail: willem@abraplata.com | Rob Bruggeman Investor Relations AbraPlata Resource Corp Tel: +1.416.884.3556 Email: rob@abraplata.com |
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.