Minera Alamos Inc. Announces Brokered Private Placement of up to 28,000,000 units
TORONTO, ONTARIO--(Marketwired - April 28, 2015) -
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Minera Alamos Inc. (the "Company" or "Minera Alamos") (TSX VENTURE:MAI) announced today that it has engaged IBK Capital Corp. (the "Agent") in connection with a proposed brokered private placement of up to 28,000,000 units (the "Units") of the Company at a price of $0.10 per Unit for aggregate proceeds of up to $2,800,000 (the "Offering").
"This financing marks an exciting turning point for the Company," said Chris Frostad, CEO, Minera Alamos Inc. "This will provide adequate funding to complete the evaluation and design of our phase 1 development at Los Verdes while also alleviating the Company's current debt burden."
Each Unit will consist of one common share in the capital of the Company and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share at a price of $0.10 per share and is exercisable for a period of four years from the closing of the Offering.
The Agent will receive a cash commission of 8% of the proceeds of the financing. The Agent will also receive an option to acquire such number of Units of the Company as is equal to 8% of the Units sold under the offering at a price of $0.10 per share for a period of four years from the closing of the offering.
In accordance with applicable securities legislation, all securities issued will be subject to a hold period of four months and a day from the date of completion of the Offering. The proceeds of the Offering will be used by the Company for debt reduction, to evaluate an initial production decision on the Corporation's Los Verdes copper and molybdenum project in Sonora, Mexico and for general working capital purposes.
It is expected that one or more insiders of the Company may participate in the Offering. By virtue of such participation by the insider(s), the Offering would constitute a "related party transaction" under applicable securities laws. The Company expects to release a material change report including details with respect to the related party transaction, if any, less than 21 days prior to the closing of the Offering, which the Company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.
About Minera Alamos
Minera Alamos is a junior exploration and development company; its projects include the Los Verdes open pit copper-molybdenum porphyry project in Sonora, northern Mexico that is currently in development.
About IBK Capital Corp.
IBK Capital is an independent and privately owned investment banking firm based in Toronto, which offers a full range of financial advisory services. Such services include private placements of equity and debt, going public by way of reverse take-over, merger, acquisition and divestiture advisory services, valuations, fairness opinions and take-over defense planning.
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