Proceeds slated for exploration and general working capital purposes
By Devika Patel
Knoxville, Tenn., Nov. 15 - AndeanGold Ltd. said it raised C$997,500 in the initial tranche of a C$1.2 million private placement of units. It is conducting the placement on a non-brokered basis in Canada and through agent Kallpa Securities SAB in South America. The deal priced on Nov. 2.
The company is selling 12 million units of one common share and a half-share warrant at C$0.10 per unit. It sold 9,975,000 units in the first tranche.
Each whole warrant will be exercisable at C$0.15 for 18 months. The strike price reflects a 50% premium to the Nov. 1 closing share price of C$0.10.
Proceeds will be used for exploration programs on the company's Urumalqui Project in Peru, as well as an updated mineral resource estimate and option payment obligations and for general working capital purposes.
Based in Vancouver, B.C., the company explores and develops precious metals properties in Colombia, Peru and Ecuador.
| Issuer: | AndeanGold Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$1.2 million
|
| Units: | 12 million
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.15
|
| Agent: | Non-brokered, Kallpa Securities SAB
|
| Pricing date: | Nov. 2
|
| Settlement date: | Nov. 15 (for C$997,500)
|
| Stock symbol: | TSX Venture: AAU
|
| Stock price: | C$0.10 at close Nov. 1
|
| Market capitalization: | C$4.28 million
|
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