Or to U.S. News Agencies Oroandes Resource Corp. Closes Financing with Mineralfields Group and Others
910 - 510 Burrard Street, Vancouver, British Columbia, V6C 3A8
FOR IMMEDIATE RELEASE TSX-V:OAR
OROANDES RESOURCE CORP. CLOSES FINANCING WITH MINERALFIELDS GROUP AND OTHERS
Vancouver, British Columbia – October 21, 2010 – OroAndes Resource Corp. (the “Company”) is pleased to announce that, further to its news release dated September 21, 2010, it has completed a nonbrokered private placement of $300,000 through the sale of 3,000,000 flow-through units (the “FT Units”) at a price of $0.10 per FT Unit to the MineralFields Group and other subscribers. Each FT Unit consists of one flow-through common share in the capital of the Company and one transferable (as opposed to non-transferable, as previously announced) share purchase warrant, each warrant entitling the holder to acquire one additional non-flow-through common share in the capital of the Company at a price of $0.13 per share until October 21, 2011 and thereafter at a price of $0.15 per share until October 21, 2012.
In connection with the MineralFields Group placees, Limited Market Dealer Inc. was paid finder’s and due diligence fees totalling $25,000 plus applicable taxes, and was issued an option to acquire 250,000 Units of the Company at an exercise price of $0.10 per Unit until October 21, 2012.
“We are very pleased to be entering into this relationship with MineralFields Group”, said Sandy MacDougall, the Company’s Chief Executive Officer. “This is an important milestone in the growth of OroAndes Resource Corp. and we look forward to working with MineralFields Group.”
Shares acquired by the placees are, and shares which may be acquired upon the exercise of the share purchase warrants will be, subject to a hold period until February 22, 2011, in accordance with applicable securities legislation. The proceeds of the private placement will be used by the Company to incur exploration expenditures on its Kilometre 26 Project located in the province of British Columbia.
About MineralFields Group
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver, Montreal and Calgary, is a mining fund with assets under administration that offers its tax-advantaged super flowthrough limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Fund Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com.
For further information, please contact:
Sandy MacDougall
Tel. 604-662-8186 Fax 604-662-8170 www.oroandes.com
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change, except as required by law.
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 TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, 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.
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