Vancouver, BC – Los Andes Copper Ltd. (“Los Andes”, or the “Company”, TSX Venture Exchange: LA) is pleased to announce that it intends to raise approximately $2.3 million in total proceeds, including approximately $2,145,000 in gross proceeds from a non-brokered private placement (the “Private Placement”) and $145,332 pursuant to shares for debt settlement agreements with five insiders of the Company (the “Settlement Agreements”).
The Company has agreed to sell up to 9,750,000 shares (the “Private Placement Shares”) priced at $0.22 per share in accordance with the terms of the Private Placement. Turnbrook Mining Ltd., the Company’s largest shareholder, has provided the Company with a commitment to purchase its pro rata portion (50.4%) of the Private Placement Shares, and has indicated its willingness to support the Company with additional funds if necessary to help the Company raise the full $2,145,000 in gross proceeds from the Private Placement. The proceeds of the Private Placement will be used to fund the drilling program to be carried out by Terraservice, a world class drilling company, on the Company’s Vizcachitas project and for general working capital purposes.
The Company has also agreed to enter into the Settlement Agreements with Zeitler Holdings Corp. (“ZHC”) and directors Paul Miquel, Francis O’Kelly, Gonzalo Delaveau and Francisco Covarrubias providing that Los Andes will issue common shares of the Company (the “Settlement Shares”) at a deemed price of $0.22 per common share in full and final settlement of amounts owing to each of them. ZHC is the management company of Dr. Klaus Zeitler, the Company’s Chairman. In accordance with the terms of the Settlement Agreements, $85,050 owing to ZHC, which is a substantial portion of the management fees currently outstanding to ZHC, and the amounts of $13,833, $15,333, $15,833, and $15,333, being director’s fees owing to Messrs. Miquel, O’Kelly, Delaveau and Covarrubias, respectively, will be settled through the issue of a total of 660,827 shares in the capital of the Company (the “Settlement Shares”).
The Settlement Agreements and the Private Placement are subject to acceptance by the TSX Venture Exchange. The Private Placement Shares and the Settlement Shares will be subject to a hold period of four months from the date of issuance of the Private Placement Shares and the Settlement Shares, respectively, in accordance with applicable Canadian securities laws.
For more information please contact:
|Antony Amberg, President & CEO||Tel: (56-22) 954-0450|
|Michael Kuta, Corporate Secretary||Tel: 604-697-6201|
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), Securities Act (Ontario) 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” on or “may”, “will”, “should”, “could”, or might” occur or be achieved; and, other similar expressions. More specifically, 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 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.