Chakana Announces Extension of Private Placement, GOLD Fields to Follow Its Participation Rights
NEWS RELEASE
For Immediate Release TSX-V: PERU
#06-2023 FRA: 1ZX
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES
CHAKANA ANNOUNCES EXTENSION OF PRIVATE PLACEMENT, GOLD FIELDS
TO FOLLOW ITS PARTICIPATION RIGHTS
Vancouver, B.C., December 13, 2023 – Chakana Copper Corp. (TSX- V: PERU; FWB: 1ZX) (the
“Company” or “Chakana”) announces that the TSX Venture Exchange (the “ TSXV”) has granted an
extension to the closing time of the Company’s non-brokered private placement of up to 55,000,000 units
(“Units”) at a price of C$0.04 per Unit for gross proceeds of up to C$2.2 million (the “Private Placement”)
(see new releases dated October 18, 2023, October 19, 2023 and November 6, 2023). The Company has
closed C$821,659.84 of the Private Placement to date. The extended date for final acceptance of the Private
Placement is now January 12, 2024.
Each Unit will consist of one common share in the capital of the Company (each, a “Share ”) and one
common share purchase warrant (“Warrant ”). Each Warrant will entitle the holder to purchase one
additional Share at a price of $0.06 per Share for a period of two years from closing of the Private Placement.
The Company may accelerate the expiry of the Warrants in the event that for any ten consecutive trading
days the closing price of the Shares is greater than $0.09.
Pursuant to an agreement between the Company and Gold Fields Nazca Holdings Inc. (“Gold Fields”), a
wholly owned indirect subsidiary of Gold Fields Limited (see news release dated April 19, 2019), Gold
Fields exercised its participation right to purchase 8,555,643 Units in the first tranche of the Private
Placement for total proceeds of C$342,225.75 and currently owns 19.9% of the outstanding shares in the
Company. Gold Fields has informed the Company that it intends to participate in the second tranche of the
financing. In addition, directors and officers of the Company purchased an aggregate of 3,185,852 Units in
the first tranche of the Private Placement for total proceeds of C$127,434.09.
The company intends to use $2M of the proceeds from the Private Placement for exploration drilling and
development of the Company’s high- grade copper-gold-silver discovery at the Soledad Project, located in
the Ancash region of Peru, and for general working capital and administrative purposes. On June 28, 2023,
the Company received final approval to drill numerous targets on the southern- half of the Soledad project
(see news release dated July 5, 2023), including the Mega-Gold porphyry target, the La Joya high-sulfidation
epithermal target, and additional high-grade outcropping tourmaline breccia pipes. The remaining funds will
be used for general working capital and administrative purposes , including salaries payable to non -arms
length parties. There are no proposed payments to persons conducting investor relations activities.
The Soledad project is an emerging copper -gold-silver discovery in the active Aija- Ticapampa mining
district. An initial Inferred Resource (MRE) of 191,000 ounces of gold, 11.7 million ounces of silver, and
130 million pounds of copper hosted in tourmaline breccia pipes and open at depth was published in Q1
2022 ( see news releases dated January 11 and February 23, 2022) contained within 4.8 million tonnes
grading 0.72 g/t gold, 61 g/t silver and 0.97% copper assumed to be extractable by underground mining
methods, plus an additional Inferred Resource of 1.9 million tonnes grading 1.29 g/t gold, 37.1 g/t silver and
0.65% copper assumed to be extractable by open pit mining methods. The currently defined resource reflects
only a small portion of the potential of the Soledad mineral system as the tourmaline breccias are just one of
several mineralization styles related to a major intrusive center at Soledad that are subject to ongoing
exploration.
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Chakana may pay finder’s fees on some portion of the gross proceeds of the Private Placement to certain
arms-length parties who assist the Company in introducing subscribers to the Private Placement. The Private
Placement is subject to all necessary regulatory approvals, including the approval of the TS XV. The
securities issued under the Private Placement will be subject to a hold period under applicable securities laws
in Canada expiring four months and one day from the closing date of the Private Placement.
Members of the Company’s management team may participate in the Private Placement including
subscriptions from related parties of the Company as defined in Multilateral Instrument 61- 101 Protection
of Minority Security Holders in Special Transactions ("MI 61 -101"). The participation of management in
the Private Placement is exempt from formal valuation and minority shareholder approval requirements
pursuant to exemptions contained in sections 5.5(c) and 5.7(1)(a) of MI 61-101.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities
in the United States. The securities 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 state securities laws and may not be offered or
sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.
About Chakana Copper Corp
Chakana Copper Corp is a Canadian- based minerals exploration company that is currently advancing the
Soledad Project located in the Ancash region of Peru, a highly favorable mining jurisdiction with supportive
communities. The Soledad Project is notable fo r the high- grade copper-gold-silver mineralization that is
hosted in tourmaline breccia pipes and other intrusion-related styles of mineralization. An initial inferred
resource estimate for seven breccia pipes was announced in January 2022 (see news release dated February
23, 2022), with 6.73 Mt containing 191,000 ounces of gold, 11.7 million ounces of silver, and 130 million
pounds of copper. In addition, extensive multidisciplinary exploration has defined 154 exploration targets,
28 of which have been tested to date (18%), confirming that Soledad is a large, well-endowed mineral system
with strong exploration upside. Chakana’s investors are uniquely positioned as the Soledad Project provides
exposure to base and precious metals. For more information on the Soledad project, please visit the website
at www.chakanacopper.com.
Qualified Person
David Kelley, an officer, and a director of Chakana, and a Qualified Person as defined by NI 43-101,
reviewed and approved the technical information in this news release.
ON BEHALF OF THE BOARD
(signed) “David Kelley”
David Kelley
President and CEO
For further information contact:
Investor Relations: Info
Email: [email protected]
Telephone: 720-233-2166
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
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Forward-looking Statement Advisory: This release contains forward-looking statements, including
statements relating to the use of proceeds and completion of the Private Placement . Forward -looking
statements involve known and unknown risks, uncertainties, and other factors which may cause the actual
results, performance, or achievements of Chakana to be materially different from any future results,
performance, or achievements expressed or implied by the forward -looking statements. Forward looking
statements or information relates to, among other things, the interpretation of the nature of the
mineralization at the Soledad copper -gold-silver project (the “Project”), the potential to expand the
mineralization, and to develop and grow a resource within the Project, the planning for further exploration
work, the ability to de -risk the potential exploration targets, and our belief in the potential
for mineralization within unexplored parts of the Project. These forward -looking statements are based on
management’s current expectations and beliefs but given the uncertainties, assumptions and risks, readers
are cautioned not to place undue reliance on such forward- looking statements or information. The Company
disclaims any obligation to update, or to publicly announce, any such statements, events or developments
except as required by law.