Aldebaran Resources Inc. (TSX-V: ALDE) (OTCQX: ADBRF), is pleased to announce a C$17,468,604 non-brokered private placement led by investments from a wholly-owned subsidiary of South32 Limited and Route One Investment Company LLC. The Private Placement will be structured in two tranches.

Highlights

• In the first tranche, South32 will acquire 8,528,756 common shares at $1.01 per common share to increase its interest in the Company from 9.9% to approximately 14.8%
• In the second tranche:
  • Route One will acquire 8,200,000 common shares at $0.88
  • South32 will acquire 1,462,000 common shares at $0.88
  • Management will acquire 400,000 common shares at $0.88
• Proceeds from the Private Placement will be used to advance the Altar copper-gold project located in San Juan, Argentina and for general corporate purposes

John Black, CEO of Aldebaran commented as follows: “We are pleased to see South32 increase their interest in Aldebaran and have the continued support of Route One. This financing will put us in a strong position to execute an aggressive 2023/2024 field program on the Altar project.”

In connection with the first tranche, there will be no change to South32’s rights that were granted as part of its initial investment in the Company (see news release dated July 20, 2022), including its customary anti-dilution rights and its right to nominate a director to the Aldebaran board of directors if it obtains a 12.5% equity interest in the Company.

Route One is a control person of the Company. Accordingly, the participation of management and Route One in the Private Placement constitutes a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is exempt from the formal valuation and minority approval requirement under MI 61-101 as the fair market value of insider participation in the Private Placement does not exceed more than 25% of the market capitalization of the Company, as set forth in Sections 5.5(a) and 5.7(1)(a) of MI 61-101.

The Company will not file a material change report more than twenty-one (21) days before the expected closing date of the Private Placement, as the details of the Private Placement were not finalized until July 31, 2023, and the Company wishes to close the Private Placement as soon as practicable.

Closing of this financing is expected to occur in August 2023 and is subject to various conditions, including approval of the TSX Venture Exchange. No finder’s fee is payable in connection with this financing.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer and its management, as well as financial statements.

About Aldebaran Resources Inc. 

Aldebaran is a mineral exploration company that was spun out of Regulus Resources Inc. in 2018 and has the same core management team. Aldebaran has the right to earn up to an 80% interest in the Altar copper-gold project in San Juan Province, Argentina from Sibanye Stillwater Limited. The Altar project hosts multiple porphyry copper-gold deposits with potential for additional discoveries. Altar forms part of a cluster of world-class porphyry copper deposits which includes Los Pelambres (Antofagasta Minerals), El Pachón (Glencore), and Los Azules (McEwen Copper). In March 2021 the Company announced an updated mineral resource estimate for Altar, prepared by Independent Mining Consultants Inc. and based on the drilling completed up to and including 2020 (independent technical report prepared by Independent Mining Consultants Inc., Tucson, Arizona, titled “Technical Report, Estimated Mineral Resources, Altar Project, San Juan Province, Argentina“, dated March 22, 2021 – see news release dated March 22, 2021).