AbraPlata Announces Closing of Private Placement
Tickers: XTSX:ABRA, PINX:ABBRF
Vancouver, BC / TheNewswire / July 27, 2017 - AbraPlata Resource Corp ("AbraPlata" or the "Company") (TSX-V: ABRA; OTCQB: ABBRF; Frankfurt: 1AH) is pleased to announce it has completed, on a non-brokered basis, an offering of 4,066,480 common shares of the Company by way of a private placement at a price of $0.40 per share for total gross proceeds of $1,626,592 (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 317,742 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) $0.40 per common share during the first six months after a Finder Warrant is issued, and (ii) $0.60 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"), 1,010,274 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.
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.
President and Chief Executive Officer
For further information concerning this news release, please contact:
Willem Fuchter Karl Cahill
President & Chief Executive Officer VP Investor Relations
AbraPlata Resource Corp. AbraPlata Resource Corp.
Tel: +54.11.5258.0920 Tel: +1.858.531.6100
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.
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