Latin Metals Inc. (TSX-V: LMS) (OTCQB: LMSQF) announces that it has closed its previously announced upsized non-brokered private placement for aggregate gross proceeds of $1.3 million through the issuance of 8,666,667 units in the capital of the Company (at a subscription price of $0.15 per Unit.
Each Unit consists of one common share in the capital of Latin Metals and one-half of one common share purchase warrant, with each whole warrant entitling the holder thereof to purchase one Share at a price of $0.25 per Share for a period of 24 months from the closing of the Financing.
In connection with the closing of the Financing, the Company paid finder’s fees on a portion of the Financing to Leede Jones Gable Inc. ($30,240 cash and 201,600 finder’s warrants), Haywood Securities Inc. ($8,512 cash and 56,746 finder’s warrants) and PI Financial Corp. ($2,100 cash and 14,000 finder’s warrants), consisting of a cash commission equal to 7% of the gross proceeds raised by each finder and finder’s warrants equal to 7% of the corresponding number of Units issued. Each finder’s warrant entitles the holder thereof to purchase one common share of Latin Metals for $0.15 for a period of 12 months from the closing of the Financing.
All securities issued by the Company pursuant to the Financing are subject to a hold period of four months and one day in Canada.
Certain officers, directors and a control person of the Company participated in the Financing pursuant to the terms described above, purchasing in aggregate 4,776,000 Units. These constitute related party transactions pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied on Sections 5.5(a) and 5.7(1)(a) of MI 61-101 for an exemption from the formal valuation and minority shareholder approval requirements, respectively, as at the closing of the Financing, neither the fair market value of the Units issued in connection with the Financing, nor the fair market value of the consideration received by the Company for same, insofar as it involved the Related Parties, exceeded 25% of the Company’s market capitalization.
The proceeds of the Financing are intended to fund ongoing exploration at the Company’s mineral projects in Argentina and Peru and for general working capital.
About Latin Metals
Latin Metals is a mineral exploration company acquiring a diversified portfolio of assets in South America. The Company operates with a Prospect Generator model focusing on the acquisition of prospective exploration properties at minimum cost, completing initial evaluation through cost-effective exploration to establish drill targets, and ultimately securing joint venture partners to fund drilling and advanced exploration. Shareholders gain exposure to the upside of a significant discovery without the dilution associated with funding the highest-risk drill-based exploration.
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We acknowledge the [financial] support of the Government of Canada.