Business
Almaden Minerals Ltd. Announces Closing of $4.4 Million Non-Brokered Private Placement
VANCOUVER, BC--(Marketwired - May 25, 2016) - Almaden Minerals Ltd. ("Almaden" or the "Company") (TSX: AMM) (NYSE MKT: AAU) is pleased to announce that it has c
About this update from Almaden Minerals Ltd.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - May 25, 2016) - Almaden Minerals Ltd. (\"Almaden\" or the \"Company\") (TSX: AMM) (NYSE MKT: AAU) is pleased to announce that it has closed a non-brokered private placement involving the issuance of 3,229,082 units (\"Units\") at $1.35 per Unit. Each Unit consists of one common share of the Company and one-half of one non-transferable common share purchase warrant (each such whole share purchase warrant, a \"Warrant\"). Each Warrant allows the holder to purchase one common share of the Company at a price of $2.00 per share until November 25, 2018. Fees consisting of $147,925 in cash and warrants to purchase up to 45,944 common shares at a price of $1.44 per common share until November 25, 2018 were paid to PI Financial Corp. and other arms-length finders on a portion of the placement. Almaden intends to use the proceeds of the private placement to advance the Ixtaca deposit towards the completion of pre-feasibility studies, continue permitting work, conduct some exploration drilling, and for general working capital. Morgan Poliquin, President of Almaden, states, \"This financing allows us to continue the advancement of Ixtaca towards pre-feasibility and permitting, and also enables us to renew our exploration activities in areas proximal to the PEA pit. Since the discovery of this deposit in 2010, our work has been focused on resource drilling and engineering activities, and we are excited to revisit exploration potential in the immediate vicinity of the PEA pit.\" Duane Poliquin, Chairman of the Board of the Company, acquired 100,000 Units under the private placement. Such participation in the private placement is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units issued to, nor the consideration paid by, Mr. Poliquin exceeds 25% of the Company's market capitalization. About AlmadenAlmaden owns 100% of the Tuligtic project in Puebla State, Mexico, subject to a 2% NSR royalty held by Almadex Minerals Limited. Tuligtic covers the Ixtaca gold/silver deposit, which was discovered by Almaden in 2010. The Ixtaca deposit is located in a developed part of Mexico in Puebla State, the l...