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Chakana Copper Announces C$10,000,000 Private Placement Gold Fields to Follow Its Participation Right
Vancouver, British Columbia--(Newsfile Corp. - January 20, 2021) -   Chakana Copper Corp....
About this update from Chakana Copper Corp.
[{"type":"text","content":"Chakana Copper Announces C$10,000,000 Private Placement Gold Fields to Follow Its Participation RightVancouver, British Columbia--(Newsfile Corp. - January 20, 2021) -  Chakana Copper Corp. (TSXV: PERU) (OTCQB: CHKKF) (FSE: 1ZX) (the \"Company\" or \"Chakana\"), is pleased to announce a non-brokered private placement of 20,000,000 common shares of the Company at a price of C$0.50 per common share for gross proceeds of up to C$10 million (the \"Private Placement\"). The Company is reserving the right to increase the Private Placement to issue a total of up to 24,000,000 common shares at C$0.50 per share to raise a total of up to C$12 million.Pursuant to an agreement between the Company and Gold Fields Nazca Holdings Inc. (\"Gold Fields\"), a wholly owned indirect subsidiary of Gold Fields Limited (see news release dated April 19, 2019), Gold Fields has informed the Company that it intends to follow its participation right and to increase its pro rata ownership interest to 19.99% of the outstanding common shares of Chakana from its current position of 16.80% of the outstanding common shares. Based on a C$10 million financing, Gold Fields' participation would be up to C$3.48 million. The Company intends to use the net proceeds of the Private Placement for the accelerated exploration and development of the Company's high-grade copper-gold-silver Soledad Project located in the Ancash region of Peru and for general working capital and administrative purposes. Since restarting its 15,000m Phase 3 drill program on August 15, 2020, the Company has announced three new discoveries at Paloma East (news release - October 26, 2020), Paloma West (news releases - November 10, 2020, November 18, 2020, December 3, 2020), and at the Huancarama Breccia Complex where drilling is ongoing (news release - January 12, 2021). David Kelley, President and CEO commented, \"based on the exceptional exploration results our current drill program has achieved, we intend to accelerate both the exploration and resource drilling on the project with additional drill rigs. Since the restart of drilling in August, we have announced three new discoveries with mineralization open in multiple directions and at depth that will require resource drilling. With additional rigs on the project, we will be able to include these new discoveries in the maiden resource for t...