Pampa Metals Continues Its Exploration Program, Boosts Its Treasury & Completes $2.75 Million Private Placement
VANCOUVER, March 18, 2021 - Vancouver, British Columbia - Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIRA) (OTC PINK:PMMCF) is pleased to announce that it has completed a private placement offering of 6,115,062 units ("Units") at a price of $0.45 per Unit for gross proceeds to the Company of $2,751,780.
When Pampa Metals launched on the Canadian Securities Exchange in early December 2020, it did so after an initial raise of approximately $4 million to fund its exploration programs for copper and gold within its portfolio of eight projects located in northern Chile. The Company immediately put part of those original funds to use with the advancement of exploration activities to help define drill targets at two of its projects (Arrieros and Redondo-Veronica), including large-scale geophysical programs and geological mapping programs. Currently, the Company is planning its first drill program for late April or early May of this year, subject to permitting.
Whilst the Company currently has a strong treasury, bringing in extra funds during this strong copper market will give Pampa Metals the ability to continue to push the exploration programs forward throughout its portfolio, including further drill follow-up of the best targets.
Julian Bavin, CEO of Pampa Metals said "We are happy to be advancing our exploration program in Chile and are looking forward to seeing initial results coming in over the next few weeks. Drilling is being planned in the short term, and this boost to our treasury will give us maximum flexibility to execute our programs over the portfolio".
Details of Private Placement
Each Unit is comprised of one common share and one-half of one common share purchase warrant of the Company. Each whole warrant (a "Warrant") is exercisable into one common share of the Company at an exercise price of $0.60 per share for a period of 24 months from the closing date. The Company may reduce the exercise period of the Warrants to 30 days from the date the Company provides notice to the holders of the warrants that the weighted average trading price of the common shares of the Company on the Canadian Securities Exchange is $0.90 or greater for a period of 10 consecutive trading days.
Proceeds of the Private Placement will be used for the ongoing work program on the Arrieros property and the Company's other Chilean projects, and for general corporate purposes.
In connection with the Private Placement, the Company will pay finders fees of 8% in cash and 8% in finder warrants from the sale of Units to third parties sourced by the finders. Each finder's warrant will entitle the holder to purchase one common share of the Company at a price of $0.60 per share for a period of 24 months from the closing date.
Also, in connection with the Private Placement, the Company issued 1,090,649 common shares to Revelo Resources Corp. ("Revelo") pursuant to an anti-dilution right granted pursuant to the Busines Combination Agreement dated September 1, 2020 (the "Combination Agreement") whereby the Company acquired its Chilean properties from Revelo. The anti-dilution right provided Revelo with the right to maintain its 19.9% ownership interest in the Company until such time as the Company raised an aggregate of $6 million in equity financings, including the $4,024,500 previously raised in the fall of 2020. As a result of the above private placement of Units, the anti-dilution right has now expired. Revelo is a wholly-owned subsidiary of Austral Gold Ltd.
Securities sold in the private placement will be subject to a four-month hold period under Canadian securities laws.
ABOUT PAMPA METALS
Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE: PM). Pampa Metals owns a highly prospective 59,000-hectare portfolio of eight projects for copper and gold located along proven mineral belts in Chile, one of the world's top mining jurisdictions. The Company has a vision to create value for shareholders and all other stakeholders by making a major copper discovery along the prime mineral belts of Chile, using the best geological and technological methods. For more information, please visit Pampa Metals' website www.pampametals.com.
ON BEHALF OF THE BOARD
Julian Bavin | Chief Executive Officer
INVESTORS CONTACT
Ioannis (Yannis) Tsitos | Director
investors@pampametals.com
www.pampametals.com
Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING STATEMENT
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Pampa Metals expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. These include statements regarding our future exploration plans and results of existing plans. These statements are subject to various risks, including that results will not be as anticipated, or that timing may be impacted by restrictions on travel and work imposed due to the Covid-19 pandemic. Although Pampa Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results may differ materially from those in forward-looking statements.
SOURCE: Pampa Metals Corp.
View source version on accesswire.com:
https://www.accesswire.com/636178/Pampa-Metals-Continues-Its-Exploration-Program-Boosts-Its-Treasury-Completes-275-Million-Private-Placement