NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Minera Alamos Inc. (TSX VENTURE:MAI) (the "Company" or "Minera Alamos") is pleased to announce it has closed the previously announced private placement consisting of 36,000,000 common shares of the Company (the “Common Shares”) at a price of $0.15 per Common Share for aggregate gross proceeds of $5,400,000 (the “Offering”), including the exercise in full of the Agents’ option.
“Close to a month ago, we made a transformative decision to enter into a strategic partnership with Osisko Gold Royalties.” said Darren Koningen, President and CEO of Minera Alamos. “The goals of the new collaboration were to fast-track the path to production at the La Fortuna gold project and quickly expand our presence in Mexico organically and through additional acquisitions. We are extremely pleased to see our growth ambitions validated by the strong level of interest we received for this financing and look forward to providing further updates on our continued progress in the coming weeks”.
Minera Alamos intends to use the net proceeds of the Offering for exploration and development of the Company’s La Fortuna Project in Durango, Mexico, and for working capital and general corporate purposes.
Further Details of Offering
The Offering was led by Haywood Securities Inc., on behalf of a syndicate of agents including IBK Capital Corp. (collectively, the “Agents”). As compensation for their services, the Agents received a cash commission equal to 7.0% of the gross proceeds of the Offering and compensation options (“Compensation Options”) equal to 7.0% of the Common Shares issued in connection with the Offering. Each Compensation Option is exercisable for one Common Share at an exercise price of $0.15 for a period of 24 months from closing of the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company also granted 750,000 stock options to a director with each option being exercisable for a five-year term at a price of $0.17 per common share. All options vest and are governed by the terms and conditions of the Company's stock option plan.
About Minera Alamos
Minera Alamos is a junior exploration and development company. Its growing portfolio of high-grade Mexican projects includes the La Fortuna open pit gold project in Durango and the Los Verdes open pit copper-molybdenum project in Sonora.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
CONTACT INFORMATION:
Darren Koningen, President & CEO
416-306-0990 ext 203
Patrick Piette, Investor Relations
416-306-0990 ext 203
