Minera Alamos Announces Closing of $5.4 Million Private Placement Financing
Minera Alamos Inc.
June 29, 2017
Minera Alamos Announces Closing of $5.4 Million Private Placement Financing
TORONTO, ONTARIO--(Marketwired – June 29, 2017) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES.
Minera Alamos Inc. (TSX VENTURE:MAI) (the " Company" or "Minera Alamos") is pleased
to announce it has closed the previously announce d private placement consisting of
36,000,000 common shares of the Company (the “ Common Shares”) at a price of $0.15
per Common Share for aggregate gross proceeds of $5,400,000 (the “ Offering”), including
the exercise in full of the Agents’ option.
“Close to a month ago , we made a transformative decision to enter into a strategic
partnership with Osisko Gold Royalties,” said Darren Koningen, President and CEO of Minera
Alamos. “The goals of the new collaboration were to fast-track the path to production at the
La Fortuna gold project and quickly expand our presence in Mexico organically and through
additional acquisitions. We are extremely pleased to see our growth ambitions validated by
the strong level of interest we received for this financing and look forward to providing
further updates on our continued progress in the coming weeks.”
Minera Alamos intends to use the net proceeds of the Offering for exploration and
development of the Company’s La Fortuna Project in Durango, Mexico, and for working
capital and general corporate purposes.
Further Details of Offering
The Offering was led by Haywood Securities Inc., on behalf of a syndicate of agents
including IBK Capital Corp . (collectively, the “Agents”). As compensation for their services,
the Agents received a cash commission equal to 7.0% of the gross proceeds of the Offering
and compensation options (“ Compensation Options”) equal to 7.0% of the Common
Shares issued in connection with the Off ering. Each Compensation Option is exercisable for
one Common Share at an exercise price of $0.15 for a period of 24 months from closing of
the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registrati on or an
applicable exemption from the registration requirements. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy securities in the United States,
nor shall there be any sale of these securities in any jurisdi ction in which such offer,
solicitation or sale would be unlawful.
The Company also granted 750,000 stock options to a director with each option being
exercisable for a five -year term at a price of $0.17 per common share. All options vest and
are governed by the terms and conditions of the Company's stock option plan.
About Minera Alamos
Minera Alamos is a junior exploration and development company. Its growing portfolio of
high-grade Mexican projects includes the La Fortuna open pit gold project in Durang o and
the Los Verdes open pit copper-molybdenum project in Sonora.
NEITHER 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.
CONTACT INFORMATION:
Minera Alamos Inc
Darren Koningen, President & CEO Patrick Piette, Investor Relations
416-306-0990 ext 201 416-306-0990 ext 203
www.mineraalamos.com
Caution Regarding Forward-Looking Statements
This news release may contain forward looking information and Minera Alamos cautions
readers that forward looking information is based on certain assumptions and risk factors
that could cause actual results t o differ materially from the expectations of Minera Alamos
included in this news release. This news release includes certain "forward -looking
statements”, which often, but not always, can be identified by the use of words such as
"believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan".
These statements are based on information currently available to Minera Alamos and Minera
Alamos provides no assurance that actual results will meet management's expectations.
Forwardlooking statements include estimates and statements with respect to Minera
Alamos’ future plans, objectives or goals, to the effect that Minera Alamos or management
expects a stated condition or result to occur, including completion of the Brokered Offering,
as well as funding and exercise of royalty options contemplated under the Investment
Agreement with Osisko Gold Royalties Ltd, on the terms provided for therein or at all, the
expected timing for release of an updated resource and reserve estimate and a p reliminary
economic assessment on Fortuna and whether or not the assessment will conclude that
mineral production is feasible on a technical or economic basis, and the ability to
successfully develop other mineral exploration properties now or in the future. Since
forward-looking statements are based on assumptions and address future events and
conditions, by their very nature they involve inherent risks and uncertainties. Actual results
relating to, among other things, closing, results of exploration, the economics of processing
methods, project development, reclamation and capital costs of Minera Alamos’ mineral
properties, the ability to complete a preliminary economic assessment which supports the
technical and economic viability of mineral production, M inera Alamos’ financial condition
and prospects, could differ materially from those currently anticipated in such statements
for many reasons such as: failure to complete the Brokered Offering on the terms as
announced or at all; the absence of funding res ulting from a determination by Osisko Gold
Royalties Ltd not to exercise the royalty options contemplated under the Investment
Agreement on the terms provided for therein or at all; an inability to finance and/or
complete an updated resource and reserve estimate and a preliminary economic
assessment which supports the technical and economic viability of mineral production;
changes in general economic conditions and conditions in the financial markets; changes in
demand and prices for minerals; litigation, legislative, environmental and other judicial,
regulatory, political and competitive developments; technological and operational difficulties
encountered in connection with Minera Alamos’ activities; and other matters discussed in
this news release and in filings made with securities regulators. This list is not exhaustive of
the factors that may affect any of Minera Alamos’ forward -looking statements. These and
other factors should be considered carefully and readers should not place undue reliance on
Minera Alamos’ forward-looking statements. Minera Alamos does not undertake to update
any forward looking statement that may be made from time to time by Minera Alamos or on
its behalf, except in accordance with applicable securities laws.
NEITHER TSX VENTUR E 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.