AbraPlata Closes $18.0 Million Private Placement with $9.9 Million Investment from Eric Sprott
220 Bay Street, Suite 550, Toronto, ON, M5J 2W4
www.abraplata.com
AbraPlata Closes $18.0 Million Private Placement with $9.9 Million Investment from Eric
Sprott
NOT FOR DISTRIBUTION IN THE U.S. OR DISSEMINATION THROUGH U.S. NEWSWIRE SERVICES
Toronto – September 01, 2020: 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 66,666,666 units (each, a “Unit”) at a price of $0.27 per Unit for gross proceeds of $18.0
million. Each Unit consisted of one common share in the equity of the Company (each, a "Common
Share") and one-half of one share purchase warrant (each whole warrant, a "Warrant").
Each Warrant entitles the subscriber to purchase one additional Common Share at a price of $0.40 until
the second (2nd) anniversary of the closing date of the Placement. Notwithstanding the foregoing, in the
event that, following the January 2, 2021, the volume weighted average price on the TSX Venture
Exchange has been at least $0.70 for 20 consecutive trading days, the Company may deliver a notice to
the holders of Warrants accelerating the Expiry Date to the date that is 30 days following such notice,
and any unexercised Warrants after such period shall automatically expire.
Mr. Eric Sprott through 2176423 Ontario Ltd. (“2176423”), a corporation which is beneficially owned by
him, acquired 36,481,500 Units pursuant to the Private Placement. After closing of the Placement, Mr.
Sprott now beneficially owns or controls 62,481,500 Common Shares and 44,240,750 Common Share
purchase warrants, representing approximately 15.8% of the Company’s issued and outstanding
Common Shares on a non-diluted basis and 24.3% on a partially diluted basis assuming exercise of all
warrants held by Mr. Sprott. Prior to the closing of the Placement, Mr. Sprott owned 26,000,000 Common
Shares and 26,000,000 Common Share purchase warrants. Mr. Sprott has signed an undertaking not
to exercise his warrants until such time as the Company can obtain disinterested shareholder approval
of the creation of a new control person, which is required once Mr. Sprott passes the 20% ownership
threshold. The Company has agreed to call a shareholders’ special meeting within 4 months of the
closing of the Placement, at which time such approval will be sought.
The Units were acquired by Mr. Sprott, through 2176423, for investment purposes. Mr. Sprott has a long-
term view of the investment and may acquire additional securities of the Company including on the open
market or through private acquisitions or sell securities of the Company including on the open market or
through private dispositions in the future depending on market conditions, reformulation of plans and/or
other relevant factors.
A copy of 2176423’s early warning report will appear on the Company's profile on SEDAR and may also
be obtained by calling 416-945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower,
Toronto, Ontario M5J 2J1).
Mr. John Miniotis, President and CEO of AbraPlata commented, “With a strong balance sheet consisting
of over $25 million in cash, AbraPlata is now very well positioned to aggressively advance Diablillos and
continue to unlock value for shareholders. We are very pleased that Mr. Sprott is now the largest
shareholder of AbraPlata and combined with Altius Minerals Corp. and SSR Mining Inc., the three parties
collectively own over 36% of the Company.”
The proceeds of the Placement will be used to advance exploration activities at the Diablillos Silver-Gold
project and for general working capital purposes. In connection with the completion of the Placement, the
Company will pay aggregate finders’ fees of $1,035,217 to Clarus Securities Inc., Haywood Securities
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Inc. and Canaccord Genuity Corp. and issue 4,000,000 broker warrants exercisable for Common Shares
at a price of $0.27 until the Expiry Date.
All securities issued in connection with the closing of the Placement are subject to a four-month-and one-
day statutory hold period in accordance with applicable securities laws.
Mr. Sprott is an insider of the Company. In addition, officers and directors of AbraPlata subscribed in the
Placement for an aggregate of 199,966 Units and the participation of such officers and directors of
AbraPlata and Mr. Sprott in the Placement constitutes a "related party transaction" within the meaning of
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 pursuant to section 5.5(a) and section 5.7(1)(a) as the fair market value of the
participation of Mr. Sprott and the directors and officers is not more than 25% of the Company's market
capitalization. The Company did not file a material change report in respect of the related-party
transaction at least 21 days prior to the closing of the Placement, which the Company deems reasonable
in the circumstances so as to be able to avail itself of the proceeds of the Placement in an expeditious
manner
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.
About AbraPlata
AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects
in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the
mining-friendly Salta province of Argentina, which is well-advanced, with more than US$40 million spent historically
on exploration with drilling ongoing and an initial open pit PEA completed in 2018. The Company is led by an
experienced management team and has long-term supportive shareholders including Mr. Eric Sprott, Altius Minerals
and SSR Mining. In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up
to a 75% interest by funding up to US$25 million in exploration. AbraPlata is listed on the TSX-V under the symbol
“ABRA”.
For further information please visit the AbraPlata website at www.abraplata.com or contact:
John Miniotis, President & CEO
Tel: +1 416-306-8334
Cautionary Statements
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.
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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 news release.