Lundin Mining Acquires 15.4% Interest in Salazar Resources
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 3, 2012) - Salazar Resources Ltd. (TSX VENTURE:SRL)(FRANKFURT:CCG) is pleased to announce that the Company has closed a non-brokered private placement (the "Private Placement") consisting of 6,000,000 units (the "Units") at a price of $0.50 per Unit for gross proceeds of $3 million. Each Unit comprises one common share and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share of the Company for a period of two years from closing at a price of $0.65 per share. The Company wishes to clarify that further to its press release dated January 30, 2012, the warrants issued in the Private Placement are non-transferable.
Over 80% of the Private Placement was taken-up by Lundin Mining Corporation (TSX:LUN). The Private Placement is designed to provide Lundin with an immediate 15.4% ownership of Salazar on a partially diluted basis after giving effect to the warrants held by Lundin. The Company has granted to Lundin a non-dilutive right where they may participate in any future equity financings conducted by Salazar so that they may maintain their ownership percentage. Additionally Silvercorp Metals Inc. (TSX:SVM) participated in the Private Placement to maintain their pro-rata interest which currently sits at 10.7% on a partially diluted basis after giving effect to the warrants held by Silvercorp.
Fredy Salazar, Salazar's CEO, commented, "Lundin Mining Corporation is world-renowned for their successes in identifying and advancing high quality mineral development projects through to production. We look forward to working with this experienced and highly regarded group. Salazar management believes that the new interest and investment by Lundin, as well as Silvercorp's continued investment and support is a testament to the quality and potential of the El Domo project."
About Lundin Mining Corporation: Lundin is a diversified Canadian base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at Neves-Corvo mine along with its equity stake in the world class TenkeFungurume copper/cobalt mine in the Democratic Republic of Congo.
In connection with the Private Placement, the Company, at the option of the finder, issued to an arm's length third party a finder's fee consisting of 120,000 Units (being equal to a cash commission of 2% of the proceeds raised from investors introduced to the Company by the finder).
The proceeds of the Private Placement will be used to fund the Company's exploration properties and for general working capital. The securities issued in the Private Placement are subject to a four month hold period in accordance with applicable Canadian securities laws.
ON BEHALF OF THE BOARD OF SALAZAR RESOURCES LIMITED
Fredy Salazar, President & CEO
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