Plata Latina (PLA-V) Announces $3,000,000 Bought Deal Private Placement
Jan 18, 2013 - News Release
Plata Latina has today entered into an agreement with Canaccord Genuity Corp. under which the Underwriter has agreed to buy, on a bought deal private placement basis, 7,500,000 Units of the Company (the "Units") at an issue price of C$0.40 per Unit for gross proceeds to the Company of C$3,000,000 (the "Offering"). Each Unit will be comprised of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to subscribe for one additional common share at an exercise price of C$0.65 (the "Warrant Price") at any time prior to the day that is 24 months from the closing date of the Offering. The Underwriter will also have the option to purchase up to an additional 1,250,000 Units (the "Over-Allotment Units") at the issue price for a period of up to 48 hours prior to the closing date for additional gross proceeds of up to C$500,000 (the "Over-Allotment Option").
The net proceeds of the Offering will be for continued drilling on the Company's Naranjillo property where exploration will be focused on establishing continuity along strike of the initial high-grade discovery. Net proceeds will also be used to commence a first phase drill program at the Company's Vaquerias and Palo Alto properties. Vaquerias contains a historical shallow silver mine, on a major structural target, that was abandoned during the Mexican revolution with old workings exhibiting samples of up to 1,340 g/t silver*. Plata Latina is currently ready to mobilize a drill on site and initial drilling will be focused on establishing continuity below these old workings and ultimately along the structure. Initial drilling at Palo Alto will be focused on exploring potential structures that have been identified through mapping and surface sampling.
The Offering is expected to close on or about February 12, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All shares issued pursuant to the Offering are subject to a statutory four-month and one day hold period as prescribed by the TSX Venture Exchange and applicable securities laws.
This news release is intended for distribution in Canada only and is not intended for distribution to United States newswire services or dissemination in the United States. The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.
* Samples from old workings are taken from 1983 Mexican Government Vaquerias Sampling and Report. These results have not been verified by Plata Latina or a Qualified Person. |
