AbraPlata Announces Non-brokered Private Placement and Plans to Resume Drilling Program at the Diablillos Silver-Gold Project
NOT FOR DISTRIBUTION IN THE U.S. OR DISSEMINATION THROUGH U.S. NEWSWIRE SERVICES
Toronto - April 27, 2020: AbraPlata Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraPlata" or the “Company”) announces that it plans to complete a non-brokered private placement through the issuance of up to 25,000,000 units ("Units") at a price of CAD$0.08 per Unit (the "Offering"). Pursuant to the Offering, the Company is targeting to raise gross proceeds of up to CAD$2,000,000.
Each Unit will consist of one common share in the equity of the Company (each, a "Common Share") and one share purchase warrant (each, a "Warrant"). Each Warrant will entitle the subscriber to purchase one additional Common Share at a price of $0.15 until the third (3rd) anniversary of the closing date of the Offering (the "Expiry Date"). Notwithstanding the foregoing, the Expiry Date of the Warrants will be accelerated if, for any ten (10) consecutive trading days on the TSX Venture Exchange during the unexpired term of the Warrant (the "Premium Trading Days"), the closing price of the Common Shares equals or exceeds $0.30.
The proceeds of the Offering will be used to resume a diamond drill program at the Diablillos silver-gold project and for general working capital purposes. The Company may pay finder's fees in respect to the Offering. Securities issued as a result of the Offering will be subject to a statutory hold period of four months. Closing of the Offering is expected on or about May 15, 2020. Completion of the Offering is subject to regulatory approval, including approval of the TSX Venture Exchange.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of any offer to buy securities in the United States, nor in any other jurisdiction.
Oculto Drill Program
The next phase of the drill program at Oculto is planned to begin in May 2020 and will consist of approximately 1,600 metres of diamond drilling in four holes. The drill campaign will continue to evaluate the potential for additional high grade gold and silver mineralization adjacent to and beneath the current mineral resources, as well as into the basement rocks. The campaign will consist of two step-out drill holes which are designed to follow-up on high grade intercepts encountered in holes DDH 19-002 and DDH 20-001 (see Company news releases dated Jan. 27, 2020, and Feb. 19, 2020). The other two holes will be drilled further along strike to test for the eastern extension of the Oculto mineralized system.
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