Chakana Announces CDN$8 Million Strategic Investment from GOLD Fields Limited
LEGAL_31076650.1
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERV ICES OR FOR DISSEMINATION IN THE
UNITED STATES
NEWS RELEASE
CHAKANA ANNOUNCES CDN$8 MILLION STRATEGIC INVESTMENT
FROM GOLD FIELDS LIMITED
Vancouver, B.C., April 29, 2019 – Chakana Copper Co rp. (TSX-V: PERU; OTCQB: CHKKF;
FWB: 1ZX) is pleased to announce that it has entered into an agreement pursuant to which Gold Fields
Nazca Holdings Inc., a wholly-owned indirect subsid iary of Gold Fields Limited (“Gold Fields”) has
agreed to subscribe for and purchase 15,686,275 common shares of the Company (the “Chakana Shares” ),
representing 16.14% of the outstanding Chakana Shar es, at a price of CDN$0.51 per Chakana Share for
total gross proceeds of CDN$8,000,000 (the “Financi ng”). No commissions or fees are being paid in
connection with the Gold Fields investment.
Gold Fields, the 7th largest gold producer in the world by production *, is a globally diversified gold company
with seven operating mines (and a joint venture on an operating mine) in Australia, Ghana, Peru and So uth
Africa, and a total attributable annual gold-equivalent production of approximately 2.2 million ounces. It has
attributable gold Mineral Reserves of around 49 mil lion ounces and gold Mineral Resources of around 10 4
million ounces. Attributable copper Mineral Reserves total 764 mi llion pounds and Mineral Resources of
4,881 million pounds. Gold Fields operates the Cerro Corona mine located in northern Peru.
On closing of the Financing, Gold Fields (through i ts wholly-owned subsidiary) will be granted certain
rights pursuant to the terms of an investment agree ment, exercisable for as long as Gold Fields owns m ore
than 10.0% of the common shares of Chakana (calcula ted in accordance with the terms of the Investment
Agreement). These rights include: (a) a right to se t up a Technical Advisory Panel to review and provi de
input on Chakana’s exploration program, (b) a pre-e mptive right to participate in any future proposed
equity offering of Chakana in order to maintain its pro-rata interest, and (c) the right to increase t heir
equity position to match that of another mining company in a future equity financing should that occur. No
board representation, right of first refusal, or joint venture rights are being granted to Gold Fields’ pursuant
to the Financing.
“We are extremely pleased to welcome Gold Fields as a strategic investor in Chakana. Gold Fields’
investment validates the potential of the Soledad project, and their technical and operational expertise in
Peru will help us unlock that potential,” stated Da vid Kelley, President and CEO of Chakana. “Upon
closing, we will be well funded to execute an aggressive drilling program to test the multitude of targets we
have on the property and produce an initial resource on several breccia pipes.
All securities issued in the Financing will be subj ect to a statutory four month hold period. The Fina ncing
is subject to a number of conditions, including, wi thout limitation, receipt of all regulatory approva ls,
including approval of the TSX Venture Exchange.
The net proceeds of the Financing will be used to a dvance the exploration and development of the
Company's Soledad copper-gold-silver project in Central Peru.
*Source; http://www.goldfields.com/pdf/investors/fact-sheets/2018.pdf
LEGAL_31076650.1
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities
described in this news release in the United States . Such securities have not been, and will not be,
registered under the United States Securities Act o f 1933, as amended (the “U.S. Securities Act”), or any
state securities laws, and, accordingly, may not be offered or sold within the United States, or to or for the
account or benefit of persons in the United States or "U.S. Persons", as such term is defined in Regul ation
S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable
state securities laws or pursuant to an exemption from such registration requirements.
ON BEHALF OF THE BOARD
(signed) “ David Kelley ”
David Kelley
President and CEO
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) accepts responsibility for the adequacy or accuracy of this release.
Completion of the Financing is subject to a number of conditions, including but not limited to, Exchan ge
approval. There can be no assurance that the Finan cing 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
Financing and the use of the net proceeds therefrom , and other statements that are not historical fact s.
Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate" ,
"expects" and similar expressions. All statements o ther than statements of historical fact included in this
release are forward-looking statements that involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actua l 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 ma y
prove to be incorrect. Events or circumstances may cause actual results to differ materially from thos e
predicted, as a result of numerous known and unknow n risks, uncertainties, and other factors, many of
which are beyond the control of the Company. As a r esult, the Company cannot guarantee that the
Financing will be completed on the term disclosed h erein or at all. The reader is cautioned not to pla ce
undue reliance on any forward-looking information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect and actual results may differ materia lly
from those anticipated. Forward-looking statements contained in this news release are expressly qualif ied
by this cautionary statement. The forward-looking s tatements contained in this news release are made a s of
the date of this news release and the Company does not intend to update any of the included forward-
looking statements except as required by Canadian securities laws.