Chakana Closes First Tranche of Private Placement, GOLD Fields Exercises Participation Rights
NEWS RELEASE
For Immediate Release TSX-V: PERU
#05-2023 FRA: 1ZX
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES
CHAKANA CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT, GOLD FIELDS
EXERCISES PARTICIPATION RIGHTS
Vancouver, B.C., November 6, 2023 – Chakana Copper Corp. (TSX -V: PERU; FWB: 1ZX) (the
“Company” or “Chakana”) is pleased to announce that it has completed the first tranche of its previously
announced private placement (the “Private Placement”) for 20,541,495 units of the Company (“Units”) at
a price of C$0.04 per Unit for gross proceeds of C$821,659.84.
Each Unit consists of one common share in the capital of the Company (each, a “Share”) and one common
share purchase warrant (each whole warrant, a “Warrant ”). Each Warrant entitles 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, Gold Fields has 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.
This placement takes Gold Fields from an equity position of 17.4% to 19.9%. In addition, directors and
officers of the Company purchased an aggregate of 3,185,852 Units in the first tranche of th e Private
Placement for total proceeds of C$127,434.09.
David Kelley, President and CEO commented, “We are excited to see such strong support in this financing
from Gold Fields and other investors in this first tranche. Completing the second tranche will allow us to
continue our aggressive exploration program at our Soledad copper-gold-silver discovery in Peru.”
The Company intends to use the net proceeds of the Private Placement for 2,400 metres of exploration
drilling and advancement of the Company’s high-grade copper-gold-silver discovery at the Soledad Project,
located in the Ancash region of Peru. On June 28, 2023 the Company received final approval to drill
numerous targets on the southern-half of the Soledad project (see news release dated July 5, 2023), including
the Mega-Gold porphyry target, the La Joya high- sulfidation epithermal target, and a dditional high-grade
outcropping tourmaline breccia pipes. A small portion of the proceeds of the Private Placement will be used
for general working capital and administrative purposes, including salaries payable to non- arms length
parties. There are no proposed payments to persons conducting investor relations activities.
Chakana paid aggregate finder’s fees of C$ 13,720 and issued 343,000 finder’s warrants (the “Finder’s
Warrants”) in connection with the first tranche of the Private Placement. Each Finder’s Warrant is
exercisable to purchase one Share at a price of $0.06 per Share for a period of two years from closing of the
Private Placement, subject to acceleration..
All securities issued under the Private Placement are subject to a four-month hold period expiring on March
4, 2024 in accordance with applicable Canadian securities laws, in addition to such other restrictions as may
apply under applicable securities laws in jurisdictions outside of Canada. Final closing of the Private
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Placement is subject to all necessary regulatory approvals, including the approval of the TSX Venture
Exchange.
Members of the Company’s management team participated 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.
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
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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 developme nts
except as required by law.