By Devika Patel
Knoxville, Tenn., Dec. 18 - Andean American Mining Corp. said it has settled the first tranche of a non-brokered private placement of units, raising C$2 million, and also said it was increasing the size of the offering to up to C$5.92 million. The deal priced for C$5.01 million on Dec. 10.
In this tranche, Andean sold 3,077,000 units.
The company now plans to sell 9,107,000 units, increased from up to 7.7 million units, at C$0.65 each. The units are comprised of one share and one half-share warrant. The whole warrants are exercisable at C$0.85 for two years.
The warrant expiration may be accelerated to 30 days if the company's stock trades at or above C$1.50 for 20 consecutive trading days.
The company may pay a 7% finder's fee and issue 8% in finder's warrants exercisable at C$0.90 for two years.
Proceeds will be used to advance the company's Invicta project, to cover its subscription for 5 million units in Sinchao Metals' non-brokered private placement announced on Oct. 29 and for general corporate purposes.
Based in Vancouver, B.C., Andean is a gold exploration, mining and development company.
| Issuer: | Andean American Mining Corp.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$5,919,550 (maximum)
|
| Units: | 9,107,000
|
| Price: | C$0.65
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.85
|
| Agent: | Non-brokered
|
| Fees: | 7% in cash or units, 8% in finder's warrants
|
| Pricing date: | Dec. 10
|
| Upsized: | Dec. 18
|
| Settlement date: | Dec. 18 (for C$2,000,050)
|
| Stock symbol: | TSX Venture: AAG
|
| Stock price: | C$0.70 at close Dec. 7
|
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