Los Andes Copper Announces TSXV Conditional Approval of Consolidation of Vizcachitas Property and Financing
VANCOUVER, BRITISH COLUMBIA, Sep. 29, 2010 (Marketwire) -- Los Andes Copper Ltd. ("Los Andes", or the "Company") (TSX VENTURE:LA)(PINK SHEETS:LSANF) is pleased to announce that the Company has received conditional approval from the TSX Venture Exchange ("TSXV") for the acquisition of the portion of the core claims of the Vizcachitas property the Company does not currently own (the "TBC Transaction") and a concurrent financing (the "Financing"). This will be the first time after several decades that the entire resource contained in the Vizcachitas property is consolidated under unified ownership, which will put Los Andes in a position to undertake the necessary steps to advance the project towards its ultimate development.
In exchange for the issue to Turnbrook Corporation ("TBC") and certain TBC nominees (together the "Subscribers") of 35,000,000 common shares in the capital stock of Los Andes and 13,000,000 warrants to purchase Los Andes common shares at a price of $0.15 per share for a period of three years following the closing of the TBC Transaction, the Company will receive all of the outstanding securities of Gemma Properties Group Limited ("GPGL"). It is expected that, upon closing of the TBC Transaction, TBC will become a "control person" of Los Andes and at least 50% of Los Andes' board will be made up of TBC nominees. TBC is a private investment company incorporated pursuant to the laws of the Bahamas.
Pursuant to the Financing, Los Andes will raise aggregate gross proceeds of up to approximately $2.55 million by the issuance to the Subscribers of approximately 17,000,000 Los Andes Shares at a price of $0.15 per share.
GPGL is a private investment company, incorporated pursuant to the laws of the British Virgin Islands that owns 99 of the 100 issued and outstanding shares of Inversiones Los Patos S.A. ("Los Patos"). The owner of the remaining share in Los Patos will transfer that share to Los Andes. Los Patos is the legal and beneficial owner of 49% of the issued and outstanding shares of Sociedad Legal Minera San Jose Uno de Lo Vicuna, El Tartaro y Piguchen de Putaendo (the "SLM"), and the SLM is the legal and beneficial owner of the mining concessions (the "SJ Concessions") that form the central portion of the Vizcachitas property.
Los Andes is the indirect legal and beneficial owner of the remaining 51% of the shares of the SLM, and also is the indirect legal and beneficial owner of, or has an option to purchase, the claims surrounding the SJ Concessions that make up the remainder of the Vizcachitas property. The TBC Transaction will provide Los Andes with 100% of the central mining claims of the Vizcachitas Property.
Completion of the TBC Transaction and the Financing is subject to agreement on and completion of formal documentation, due diligence, approval by the boards of TBC and Los Andes, the approval by written consent of disinterested Los Andes shareholders holding a simple majority of the outstanding shares, and the filing on SEDAR of a Filing Statement
setting out information relevant to the TBC Transaction. The Subscribers and their respective insiders holding Los Andes shares will not be entitled to vote on the approval of the Transaction.
Shareholders of Los Andes are asked to provide their contact information to Los Andes at approve@losandescopper.com in order that we may disseminate consents in writing. Once the Filing Statement has been approved by the TSX Venture Exchange and filed on SEDAR, the Company will distribute Forms of Consent to be executed and returned to the Company.
About Vizcachitas
The Vizcachitas Project offers potential for a low strip, open pit operation in an area of low elevation with excellent infrastructure, including water and power in central Chile. The Vizcachitas deposit occurs in the same metallogenic belt as the giant copper-molybdenum porphyries Rio Blanco-Los Bronces, Los Pelambres and El Teniente. Based on 35,255 metres of drilling in 130 diamond drill holes, the project contains an indicated resource of 515 million tonnes grading 0.39% copper and 0.011% molybdenum and an inferred resource of 572 million tonnes grading 0.34% copper and 0.012% molybdenum at a 0.30% copper equivalent cutoff. Additional information about the Vizcachitas Project is available in the National Instrument 43- 101 Technical Report prepared by AMEC and filed by the Company on SEDAR on August 29 2008, and on our website at www.losandescopper.com.
This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Los Andes Copper Ltd. Corporate Secretary 604-697-6201 Los Andes Copper Ltd. President 416-516-6050 info@losandescopper.com www.losandescopper.com
Source: Marketwire Canada (September 29, 2010 - 5:34 PM EDT)
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