Almaden Minerals Ltd. (TSX:AMM)(NYSE MKT:AAU) is pleased to announce that it has closed a non-brokered private placement by the issuance of 4,376,000 units at $1.25 per Unit to a small group of Mexican and Mexican focussed strategic investors. Each Unit consists of one common share and one non-transferable common share purchase warrant. Each Warrant allows the holder to purchase one common share at a price of $1.50 per common share until January 17, 2015 and, thereafter, at a price of $1.80 per common share until July 17, 2016. A finder’s fee of $232,500 in cash and finder’s warrants to purchase up to 186,000 common shares at a price of $1.50 per common share until July 17, 2016 was paid on a portion of the placement.
Morgan J. Poliquin, President and CEO of Almaden noted that “We were approached by a small group of strategic investors some of whom are already long term shareholders of the Company. This group of people are focussed on Mexico and are excited about the potential of our Ixtaca gold-silver project and the prospect generation process that Almaden follows. We are convinced that these investors will provide important support for the Company in developing this exciting Mexican asset. Most importantly this financing allows us to confidently continue our Ixtaca exploration and development program, which the Company had previously considered modifying in the context of the present very challenging financial marketplace. We are pleased to be able to continue our exploration efforts at a conservative and prudent pace.”
Duane Poliquin, Chairman of the Board of the Company, as to 40,000 Units, Gerald Carlson, a Director of the Company, as to 16,000 Units, and Mark Brown, a Director of the Company, as to 20,000 Units through his private company, Pacific Opportunity Capital Ltd., acquired Units under the private placement. Such participation in the private placement is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101.The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units issued to, nor the consideration paid by, such persons exceeds 25% of the Company’s market capitalization.
Following completion of this private placement, Almaden has approximately $16.9 million in cash. In addition, Almaden has equity holdings valued at approximately $5.4 million and 1,597 ounces of physical gold in inventory currently valued at approximately $2.1 million. Almaden intends to use the funds to advance its Ixtaca gold-silver deposit towards the completion of advanced engineering studies and for general working capital.
Almaden is a well-financed mineral exploration company working in North America. The Company has assembled mineral exploration projects, including the Ixtaca Zone and the Tuligtic project, through its grass roots exploration efforts. Almaden’s business model is to provide shareholders with opportunities of capital gain by using its technical expertise to find, acquire and develop early-stage mineral properties. The company intends to expand this business model, described by some as prospect generation, by more aggressively exploring several of its projects including the Ixtaca Zo
Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) reported record... READ MORE
Including true width intervals of 6.08 g/t Au over 25.7 m at Stoc... READ MORE
Imperial Metals Corporation (TSX:III) reports financial results ... READ MORE
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) reported its first qu... READ MORE
Cameco (TSX: CCO) (NYSE: CCJ) reported its consolidated financial... READ MORE