Chakana Closes Second Tranche of Private Placement and Provides Update
Chakana Closes Second Tranche of Private
Placement and Provides Update
Vancouver, British Columbia--(Newsfile Corp. - June 22, 2022) -
Chakana Copper Corp. (TSXV:
PERU) (OTCQB: CHKKF) (FSE: 1ZX)
(the
"
Company
"
or
"
Chakana
") is pleased to announce that it
has completed a second and final tranche of its previously announced private placement (the "
Private
Placement
") for 10,470,451 units of the Company ("
Units
") at a price of C$0.11 per Unit for gross
proceeds of C$1,151,749.
Combined with the first tranche that closed in May (see news release dated
May 24, 2022), the financing resulted in total gross proceeds of $6,241,353.
Each Unit consists of one common share in the capital of the Company (each, a "
Share
") and one-half
of one common share purchase warrant (each whole warrant, a "
Warrant
").
Each Warrant entitles the
holder to purchase one additional Share at a price of $0.20 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 $0.30.
David Kelley, President and CEO, commented, "We are excited to be fully financed as we execute an
aggressive exploration drilling campaign that began June 15, 2022. This is a bold step-out exploration
program applying what we have learned in the last 4 years and utilizing the expertise and support from
the Gold Fields exploration team. We have updated our target ranking criteria to include the potential to
discover larger tonnage deposits. In addition to high-grade mineralization hosted in tourmaline breccia
pipes, we will also be testing targets related to the potential coalescence of breccia pipes (mega-
breccias), epithermal mineralization in zones of pervasive argillic alteration, and mineralization related to
a rhyodacite dome. We believe these mineralization styles are all part of the same Soledad mineral
system that occupies a 12 km
2
footprint."
The Company intends to use the net proceeds of the Private Placement for exploration 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 ESG programs, general working capital and administrative purposes. On January
11, 2022, the Company announced an
initial inferred resource hosting 191,000 ounces of gold, 11.7
million ounces of silver, and 130 million pounds of copper in seven tourmaline breccia pipes.
Chakana paid aggregate finder's fees of C$56,511 and issued 513,736 finder's warrants (the "
Finder's
Warrants
") in connection with the second tranche of the Private Placement.
Each Finder's Warrant is
exercisable to purchase one Share at a price of $0.20 per Share for a period of two years from closing
of the Private Placement.
All securities issued under the Private Placement are subject to a four-month hold period expiring on
October 22, 2022 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 Placement is subject to all necessary regulatory approvals, including the approval
of the TSX Venture Exchange.
The common shares have not been registered under the United States Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an applicable
exemption from registration requirements. This news release does not constitute an offer to sell or a
solicitation of an offer to buy such securities in any jurisdiction in which such an offer or sale would be
unlawful.
Corporate Update
Pursuant to the extension agreement and revised payment terms for the Company's purchase option
agreement with Condor Resources, the Company has elected to proceed with the second option which
requires cash and share payments to be made over a three-year period, as described in more detail in
the Company's news release dated April 18, 2022. Accordingly, the Company will pay Condor
US$800,000 and issue 1,379,310 shares prior to June 23, 2022.
Exploration Update
The company initiated a step-out exploration drilling campaign on June 15, 2022 to test thirteen new
targets not previously drilled on the north side of the project. The campaign is initially planned with one
drill rig for approximately 3,000m of core drilling with one or two holes in each target. Once these targets
have been drilled, a decision will be made regarding both additional target testing and follow-up drilling.
These thirteen targets were selected from a total of 154 targets identified on the project that were
prioritized during an in-house technical workshop incorporating recently acquired Offset IP survey results.
The principal target areas for this round of drilling on the north side of the project are 1) Cima Blanca (in-
progress), 2) Bx 4 cluster, 3) Faro, 4) Western Breccias, 5) Paloma Trend, and 6) Paloma-Huancarama
megabreccia target (Figure 1). Numerous additional high priority targets exist on the south side of the
project that will be drill tested once a drill permit is awarded for this area.
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 for the high-grade copper-gold-silver
mineralization that is hosted in tourmaline breccia pipes. An initial inferred resource estimate for seven
breccia pipes was announced in Q1 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, 18 of which have
been tested to date (12%), 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 copper and precious metals. For more information on the Soledad project, please visit the
website at
www.chakanacopper.com
.
Results of an initial resource estimate and additional information concerning the Project, including a
technical report prepared in accordance with National Instrument 43-101, are available on Chakana's
profile at
www.sedar.com
.
ON BEHALF OF THE BOARD
(signed) "
David Kelley
"
David Kelley
President and CEO
For further information contact:
Joanne Jobin, Investor Relations Officer
Phone: 647 964 0292
Email:
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 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.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED STATES
Figure 1 - Map showing total defined targets for the Soledad project by type. Principal target clusters on
the north side of the project being tested in the current exploration drilling program are Cima Blanca, Bx
4, Faro, Western Breccias, Paloma-Huancarama trends. Target clusters on the south side will be drill
tested once the drill permit is approved for this area.
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/2172/128570_3afa48a0a41ae907_001full.jpg
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/128570