AbraPlata Closes $1.5 Million Non-Brokered Private Placement
NOT FOR DISSEMINATION IN THE U.S. OR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
VANCOUVER, B.C. – October 31, 2019 – AbraPlata Resource Corp. (TSX.V: ABRA; OTCPK: ABBRF) (“AbraPlata” or the “Company”) is pleased to announce that it has closed its previously announced non-brokered private placement (the “Placement”). In connection with the closing of the Placement, the Company issued 25,000,000 units (each, a “Unit”) at a price of $0.06 per Unit for gross proceeds of $1,500,000. Each Unit consists of one common share of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”). Each Warrant entitles the holder thereof to acquire one additional Common Share at a price of $0.10 for a period of twenty-four months.
The proceeds of the Placement will be used to commence a diamond drilling program at the Diablillos Silver-Gold project and for general working capital purposes. In connection with the completion of the Placement, the Company paid finders’ fees of $8,100, to certain parties who assisted the Company by introducing subscribers to the Placement.
All securities issued in connection with the closing of the Placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Certain insiders of the Company participated in the Placement for a total of $187,500. Participation by the Company’s directors and other insiders in the Placement is considered to be a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued to insiders, nor the consideration being paid by such insiders, exceeds 25% of the Company’s market capitalization.
The securities offered in the Placement 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.
AbraPlata is focused on exploring and advancing its flagship Diablillos silver-gold property, located in mining-friendly Salta province, Argentina. Diablillos has an Indicated Mineral Resource containing 80.9M oz silver and 732k oz gold. AbraPlata also owns the highly prospective Cerro Amarillo property with its cluster of five mineralized Cu-(Mo-Au) porphyry intrusions located in a mining camp hosting the behemoth El Teniente, Los Bronces, and Los Pelambres porphyry Cu-Mo deposits. As well, AbraPlata is exploring Aguas Perdidas, its wholly owned Patagonia-style epithermal Au-Ag property. AbraPlata is based in Vancouver, Canada, and is listed on the TSX-V under the symbol “ABRA”.
ON BEHALF OF ABRAPLATA RESOURCE CORP.
For further information concerning this news release, please contact:
Tel: +1.416.884.3556 Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information about AbraPlata and its projects, please visit the Company’s website at www.abraplata.com.
Forward Looking Statement
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.