Almaden Minerals Ltd. (TSX:AMM) (NYSE MKT:AAU) is pleased to announce that it has closed a non-brokered private placement involving the issuance of 4,420,000 units at $1.25 per Unit. Each Unit consists of one common share of the Company and one-half of one non-transferable common share purchase warrant. Each Warrant allows the holder to purchase one common share of the Company at a price of $2.00 per share until February 11, 2016. Fees consisting of $212,626 in cash and warrants to purchase up to 49,410 common shares at a price of $1.28 per common share until February 11, 2016 were paid to finders on a portion of the placement.
Duane Poliquin, Chairman of the Board of the Company, as to 120,000 Units, Ernesto Echavarria, a greater than 10% shareholder of the Company, as to 320,000 Units, and Douglas McDonald, a senior officer of the Company, as to 14,000 Units, 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 (“MI 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.
Almaden intends to use the proceeds of the private placement to advance its Ixtaca deposit towards the completion of a pre-feasibility engineering study and for general working capital.
Morgan Poliquin, President of Almaden, states, “This financing bolsters Almaden’s existing cash position and positions us to execute with confidence on our key plans for this year, namely execution of the corporate spin-out announced late last year and the completion of a Pre-Feasibility study on our Ixtaca project. We look forward to providing updates to shareholders in the coming months as these developments move forward.”
Almaden is a well-financed mineral exploration company working in North America. The Company has assembled mineral exploration projects, including the Ixtaca deposit through its grassroots exploration efforts. Almaden’s business model is to provide shareholders with opportunities for capital gain by using its technical expertise to find, acquire and develop mineral properties. The Company intends to expand this business model, described by some as prospect generation, by more aggressively exploring and developing several of its projects including the Ixtaca deposit.
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