Toronto, June 30, 2015 – Minera Alamos Inc. (the “Company” or “Minera Alamos”) (TSX-V: MAI) has closed the first tranche of a brokered private placement financing for aggregate gross proceeds of $255,000 with IBK Capital Corp.
“With this series of financings nearly complete, we are now well into the process of refining our plan to bring the Los Verdes mine into production next year,” said Chris Frostad, Chief Executive Officer, Minera Alamos Inc. “We will be providing our investors with regular project updates, culminating in the release of a new Preliminary Economic Assessment prior to year-end.”
In this first tranche the Company issued 1,350,000 units at a price of $0.10 per unit for gross proceeds of $135,000 (the “Private Placement”). Each unit consists of one common share in the capital of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of $0.10 per share for a period of four years from the closing of the offering. The final tranche of $120,000 will close early next month.
In connection with the closing of the Private Placement, the Company paid IBK Capital Corp. $10,800 in cash fees and issued 108,000 non-transferable compensation options. Each compensation option entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.10 per share for a period of 48 months after the closing date.
As certain directors and officers of the Company are participating in the Private Placement, this Private Placement constitutes a related party transaction under Multilateral Instrument 61-101 (“MI 61-101”) and TSX Venture Exchange Policy 5.9. The Company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101, based on a determination that the securities of the Company are listed on the TSX Venture Exchange only and that the fair market value of the Private Placement, insofar as it involved interested parties, does not exceed 25% of the market capitalization of the Company at the time the Private Placement was agreed to. No new insiders have been created, nor has there been any change of control as a result of the Private Placement. The Company did not file a material change report 21 days prior to the closing of the Private Placement which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
This offering was carried on a private placement basis pursuant to prospectus exemptions of applicable securities laws and is subject to final acceptance by the TSX Venture Exchange.
All securities issued in connection with this tranche are subject to a four-month-and-one-day hold period expiring on October 30, 2015, pursuant to applicable securities legislation and the rules of the TSX Venture Exchange.
The proceeds of the private placement will be used by the Company to evaluate an initial production decision on the Corporation’s Los Verdes copper and molybdenum project in Sonora, Mexico and for general working capital purposes.
About Minera Alamos
Minera Alamos is a junior exploration and development company; its projects include the Los Verdes open pit copper-molybdenum porphyry project in Sonora, northern Mexico that is currently in development. Additional information regarding the Company’s plans and the Los Verdes project can be found at www.mineraalamos.com.
About IBK Capital Corp.
IBK Capital is an independent and privately owned investment banking firm based in Toronto, which offers a full range of financial advisory services. Such services include private placements of equity and debt, going public by way of reverse take-over, merger, acquisition and divestiture advisory services, valuations, fairness opinions and take-over defense planning.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information please contact:
Minera Alamos Inc.
Chris Frostad
(416) 306-0990
www.mineraalamos.com
