Mr. Brian Miller reports
ASTRA EXPLORATION ANNOUNCES $2.4 M PRIVATE PLACEMENT WITH EXPECTED PARTICIPATION FROM MICHAEL GENTILE
Astra Exploration Inc. has arranged a non-brokered private placement of up to 12 million units for gross proceeds of up to $2.4-million.
The offering will consist of 12 million units priced at 20 cents per unit, with each unit consisting of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share for 26 cents for a period of two years from closing of the offering.
New strategic investor: Michael Gentile, CFA
The company expects that Mr. Gentile will participate in the offering.
Mr. Gentile, CFA, is considered to be a leading strategic investor in the junior mining sector, and holds significant positions in a select group of high-potential junior companies. He recently founded Bastion Asset Management in Montreal, Que., and was previously a senior portfolio manager at Formula Growth Ltd.
Brian Miller, chief executive officer of Astra Exploration, commented:
"To attract the interest of Mr. Gentile is a great endorsement for Astra. His participation would be a testament to the company's potential as an attractive investment opportunity. This financing will fully fund the phase II drill program in Q3 2022 at Pampa Paciencia where initial drill results have produced some very high-quality follow-up targets."
The net proceeds from the offering will be used to fund exploration activities and for general working capital purposes.
The common shares and purchase warrants issued in this offering will be subject to a statutory hold period of four months plus one day from the date of issuance. Some securities issued in this offering may be subject to additional restrictions. The company may pay a finder's fee on a portion of the proceeds in accordance with applicable securities laws and the policies of the TSX Venture Exchange. The offering is subject to TSX Venture Exchange approval.
The company expects certain of its directors and officers to participate in the offering. Participation of insiders of the company in the offering constitutes a related-party transaction as defined under Multilateral Instrument 61-101. Because the company's shares trade only on the TSX Venture Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.
About Pampa Paciencia
Pampa Paciencia is a 3,840-hectare road-access low-sulphidation epithermal (LSE) gold-silver project located within an active mining district less than 15 kilometres from two major mines (Sierra Gorda and Spence) and five km from the Faride LSE mine.
Astra has completed property-wide mapping and sampling, geophysical surveys, and localized trenching and in doing so, has defined a vein boulder field over approximately 75 per cent of the project area. The veins do not outcrop as the majority of the project area is covered by a thin layer of gravels and caliche but the vein float can be used to identify areas of high prospectivity.
Initial drill results defined gold mineralization in the Paciencia vein system, which is a thick LSE vein structure averaging 10-metre to 20-metre thickness over a strike length of approximately 1.4 kilometres. Exploration results continue to indicate a large LSE system under thin cover, with two known zones of gold mineralization near surface which are open along strike and at depth (see May 2, 2022, and May 25, 2022, press releases).
PDAC 2022 participation
Astra will be attending the Prospectors & Developers Association of Canada (PDAC) in-person convention hosted in Toronto, Canada, from June 13, 2022, to June 15, 2022. Visit the company in the investors exchange at booth No. 3316.
About Astra Exploration Inc.
Astra is an exploration company based out of Vancouver, B.C. Astra is engaged in the acquisition, exploration and development of epithermal gold-silver properties in Chile and is building a portfolio of high-quality projects. Astra's current focus is the development of the Pampa Paciencia project.
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