Proceeds slated for exploration and general working capital purposes
By Devika Patel
Knoxville, Tenn., Dec. 5 - AndeanGold Ltd. said it increased a private placement of units to C$1.27 million from C$1.2 million. The deal priced on Nov. 2 and raised C$997,500 on Nov. 15, C$250,000 on Nov. 30 and C$24,000 on Dec. 3. A final tranche is expected.
The company is selling units of one common share and a half-share warrant at C$0.10 per unit. It sold 9,975,000 units in the first tranche, 2.5 million units in the second tranche and 240,000 units in the third closing.
Each whole warrant is exercisable at C$0.15 for 18 months. The strike price reflects a 50% premium to the Nov. 1 closing share price of C$0.10.
The company is conducting the placement on a non-brokered basis in Canada and through agent Kallpa Securities SAB in South America.
Proceeds will be used for exploration programs on the company's Urumalqui Project in Peru, as well as an updated mineral resource estimate and option payment obligations and for general working capital purposes.
Based in Vancouver, B.C., the company explores and develops precious metals properties in Colombia, Peru and Ecuador.
| Issuer: | AndeanGold Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$1,271,500
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.15
|
| Agent: | Non-brokered, Kallpa Securities SAB
|
| Pricing date: | Nov. 2
|
| Upsized: | Dec. 5
|
| Settlement dates: | Nov. 15 (for C$997,500), Nov. 30 (for C$250,000), Dec. 3 (for C$24,000)
|
| Stock symbol: | TSX Venture: AAU
|
| Stock price: | C$0.10 at close Nov. 1
|
| Market capitalization: | C$6.04 million
|
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