AbraPlata Announces $4.0 Million Private Placement with Lead Order from Eric Sprott
Toronto – June 23, 2020: AbraPlata Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraPlata" or the “Company”) is pleased to announce that it plans to complete a non-brokered private placement (the “Private Placement”) to raise up to CAD$4,000,000 through the issuance of up to 34,782,609 units ("Units") at a price of CAD$0.115 per Unit. 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 $0.17 until the second (2nd) anniversary of the closing date of the Private Placement (the "Expiry Date"). Mr. Eric Sprott has agreed to invest CAD$3,000,000 in the Private Placement, for the acquisition of 26,086,957 Units.
Mr. John Miniotis, President and CEO of AbraPlata commented, “We are very pleased to welcome Mr. Sprott as a key shareholder in AbraPlata. His investment is a strong endorsement of our substantial silver-gold resource base and ensures that AbraPlata remains well funded to aggressively pursue our exploration plans at Diablillos.”
The proceeds of the Private Placement will be primarily used to fund AbraPlata’s continuing exploration program at the Diablillos silver-gold project in Salta province, Argentina. A portion of the proceeds will be used for general working capital purposes.
AbraPlata anticipates that certain insiders will acquire securities in the Private Placement. To the extent such insiders participate in the Private Placement, any such participation would be considered a “related party transaction” as defined under Multilateral Instrument 61-101.
The Company may pay finder's fees in respect to the Private Placement. Securities issued as a result of the Private Placement will be subject to a statutory hold period of four months. Closing of the Private Placement remains 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.
About AbraPlata
AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which is well-advanced, with more than US$35 million spent historically on exploration with drilling ongoing and an initial open pit PEA completed in 2018. The Company is led by an experienced management team and has long-term supportive shareholders including Altius Minerals and SSR Mining. In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration. AbraPlata is listed on the TSX-V under the symbol “ABRA”.
For further information please visit the AbraPlata website at www.abraplata.com or contact:
John Miniotis, President & CEO
john@abraplata.com
Tel: +1 416-306-8334
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