Chakana Announces $6 Millon Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERV ICES OR FOR DISSEMINATION IN
THE UNITED STATES
NEWS RELEASE
CHAKANA ANNOUNCES $6 MILLON BROKERED PRIVATE PLACEMENT
Vancouver, B.C., March 8, 2018 – Chakana Copper Cor p. (TSX-V: PERU; OTC: CHKKF;
FWB: 1ZX) (the “ Company ” or “ Chakana ”) is pleased to announce that it has entered into an
engagement agreement with Eventus Capital Corp. (th e “ Agent ”) to act as lead agent and sole
bookrunner on a commercially reasonable efforts bas is in respect of a brokered private
placement offering of up to 6,667,000 common shares of the Company (the “ Shares ”) at a price
of $0.90 per Share (the “ Offering Price ”) for gross proceeds of approximately $6,000,000 ( the
“ Offering ”), subject to completion of satisfactory due dilig ence.
The Company intends to use the net proceeds of the Offering to fund the acceleration and
expansion of its phase 1 drill program at Chakana’s Soledad copper gold project located in Peru
and for general working capital purposes.
On closing of the Offering, the Company will pay to the Agent a cash commission of up to 6% of
the gross proceeds of the Offering placed by the Agent, in cash, and will issue up to such number
of broker warrants (the “ Broker Warrants ”) as is equal to 6% of the number of Shares placed
by the Agent. Each Broker Warrant is exercisable to acquire one Share at the Offering Price for a
period of 24 months from the date of issuance.
The Offering will be conducted by way of private pl acement pursuant to applicable exemptions
from prospectus requirements in all provinces of Ca nada and outside Canada, excluding the
United States of America, on a basis which does not require the qualification or registration of
any of the Company’s securities under domestic secu rities laws. Closing of the Offering, which
is subject to a number of conditions, including rec eipt of all necessary corporate and regulatory
approvals, including the TSX Venture Exchange, is e xpected to occur on or about March 23,
2018. All securities issued in connection with the Offering will be subject to a statutory hold
period of four months plus a day from the date of i ssuance in accordance with applicable
securities legislation.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of the securities in any State in which such offer, solicitation or sale would
be unlawful. The securities being offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended, a nd may not be offered or sold in the United
States absent registration or an applicable exempti on from the registration requirements of the
United States Securities Act of 1933, as amended, and applicable state securities laws.
ON BEHALF OF THE BOARD
(signed) “ David Kelley ”
David Kelley
President and CEO
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For further information contact:
Michelle Borromeo, Manager – Corporate Communicatio ns
Phone: 604-715-6845
Email: [email protected]
Neither TSX Venture Exchange (the “Exchange”) nor i ts Regulation Services Provider (as that
term is defined in the policies of the Exchange) ac cepts responsibility for the adequacy or
accuracy of this release.
Completion of the Offering is subject to a number o f conditions, including but not limited to,
Exchange approval. There can be no assurance that the Offering will be completed as proposed
or within in the timeframe disclosed herein or at all.
This news release contains forward-looking statemen ts, including relating to the completion of
the Offering and the use of the net proceeds theref rom, and other statements that are not
historical facts. Forward-looking statements are of ten identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions. All statements other than statements of
historical fact included in this release are forwar d-looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove to be accurate and
actual results and future events could differ materially from those anticipated in such statements.
The reader is cautioned that assumptions used in th e preparation of any forward-looking
information may prove to be incorrect. Events or ci rcumstances may cause actual results to
differ materially from those predicted, as a result of numerous known and unknown risks,
uncertainties, and other factors, many of which are beyond the control of the Company. As a
result, the Company cannot guarantee that the Offer ing will be completed on the term or
timeframe disclosed herein or at all. The reader is cautioned not to place undue reliance on any
forward-looking information. Such information, although considered reasonable by management
at the time of preparation, may prove to be incorre ct and actual results may differ materially
from those anticipated. Forward-looking statements contained in this news release are expressly
qualified by this cautionary statement. The forward -looking statements contained in this news
release are made as of the date of this news releas e and the Company does not intend to update
any of the included forward-looking statements except as required by Canadian securities laws.