(TheNewswire)
VANCOUVER, B.C. / TheNewswire / May 16, 2017 - AbraPlata Resource Corp. (TSX-V: ABRA) ("AbraPlata" or the "Company") is pleased to announce it has completed, on a non-brokered basis, an offering of 2,585,967 common shares of the Company by way of a private placement at a price of $0.30 per share for total gross proceeds of $775,790 (the "Financing"). Proceeds from the private placement will be used for property exploration and working capital.
In connection with the Financing, the Company will pay to certain arm's length parties a finder's fee comprised of (i) a cash fee equal to eight percent (8%) of the gross proceeds received from subscribers sourced by the finders, and (ii) share purchase warrants exercisable to acquire up to 164,213 common shares of the Company (the "Finder Warrants"). The Finder Warrants will be exercisable for a period of one year from the date of issuance at a price of (i) $0.30 per common share during the first six months after a Finder Warrant is issued, and (ii) $0.50 per common share for the following six months thereafter.
Pursuant to Silver Standard Resources Inc.'s ("Silver Standard") contractual anti-dilution right 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"), 642,456 common shares will be issued to Silver Standard. A copy of the SSR Agreement is available from the Company's profile on SEDAR (www.sedar.com).
The private placement is subject to regulatory approval. In compliance with Canadian securities laws and the rules of the TSX Venture Exchange, all securities issued in connection with the Financing will be subject to a hold period of four (4) months following the date hereof.
About AbraPlata Resource Corp.
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 Pelambresporphyry Cu-Mo deposits.
ON BEHALF OF THE BOARD
ABRAPLATA RESOURCE CORP.
"Willem Fuchter"
Willem Fuchter
President and Chief Executive Officer
For further information, please contact:
Willem Fuchter at willem@abraplata.com
Karl Cahill karl@abraplata.com
Or visit the website www.abraplata.com
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES
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.
This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors -- including the availability of funds, the results of financing efforts, the success of technology development efforts, the cost to procure critical parts, performance of the instrument, market acceptance of the technology, regulatory acceptance, and licensing issues -- that could cause actual results to differ materially from the Company's expectations as disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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