Mr. Willem Fuchter reports
DUE TO STRONG DEMAND ABRAPLATA CLOSES ADDITIONAL $750,000 FINANCING
Abraplata Resource Corp.
has completed, on a non-brokered basis, an offering of 2,585,967 common shares of the company by way of a private placement at a price of 30 cents per share for total gross proceeds of $775,790. Proceeds from the private placement will be used for
property exploration and working capital.
In connection with the financing, the company will pay to certain arm's-length parties a finder's fee comprising: (i) a cash fee equal to 8 per cent of the gross proceeds received from subscribers sourced by the finders; and (ii) share purchase warrants exercisable to acquire up to 164,213 common shares of the company. The finder warrants will be exercisable for a period of one year from the date of issuance at a price of: (i) 30 cents per common share during the first six months after a finder warrant is issued; and (ii) 50 cents per common share for the following six months thereafter.
Pursuant to Silver Standard Resources Inc.'s contractual anti-dilution right to maintain a 19.9-per-cent equity interest in the capital of the company, under the second amended and restated share purchase agreement dated March 21, 2017, 642,456 common shares will be issued to Silver Standard. A copy of the SSR agreement is available from the company's profile on SEDAR.
The private placement is subject to regulatory approval.
In compliance with Canadian securities laws and the rules of the TSX Venture Exchange, all securities issued in connection with the financing will be subject to a hold period of four months following the date hereof.
About Abraplata Resource Corp.
Abraplata is a junior mining exploration company focused on delivering shareholder returns by unlocking mineral value in Argentina. The company's experienced management team has assembled an outstanding portfolio of gold, silver and copper exploration assets, and is focused on advancing its flagship Diablillos property, with an indicated resource of 81.3 million ounces silver and 755,000 ounces gold, through the various stages of feasibility. In addition, Abraplata owns the highly prospective Cerro Amarillo property with its cluster of five mineralized copper-(molybdenum-gold) porphyry intrusions located in a mining camp hosting the behemoth El Teniente, Los Bronces and Los Pelambres porphyry Cu-Mo deposits.
We seek Safe Harbor.
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