Business
Minera Alamos Inc. Closes Final Tranche of $4 Million Private Placement
TORONTO, ONTARIO--(Marketwired - May 16, 2016) - Minera Alamos Inc. (TSX VENTURE:MAI) ("Minera Alamos" or the "Company") is pleased to announce the closing of t
About this update from Minera Alamos Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - May 16, 2016) - Minera Alamos Inc. (TSX VENTURE:MAI) (\"Minera Alamos\" or the \"Company\") is pleased to announce the closing of the final tranche of the previously announced non-brokered private placement for gross proceeds of $1,980,000. Together with the first two tranches of the private placement closed in May and April, the Company has raised, in aggregate, $4,000,000. \"We are moving forward aggressively on our work at our recently acquired La Fortuna gold project and expect to have permits in hand on both of our Mexican development projects by early next year,\" said Chris Frostad, Chief Executive Officer of Minera Alamos Inc. \"This financing provides adequate funds to move us beyond a construction decision.\" In connection with the closing of the final tranche of the private placement, the Company has issued, 19,800,000 common share units (\"Units\") at a price of $0.10 per Unit with each unit consisting of one common share in the capital of the Company and one half (1/2) of a common share purchase warrant. Each whole warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.15 per share for a period of 36 months from the date of issuance. The closing is subject to final acceptance by the TSX Venture Exchange of the private placement. Darren Koningen, a director and President of the Company, participated in the final tranche of the private placement as an investor and subscribed 2,779,760 Units for $277,976. Chris Frostad, a director and CEO of the Company, also participated in the final tranche of the private placement as an investor and subscribed 1,000,000 Units for $100,000. By virtue of such participation by the insiders, the private placement constitutes a related party transaction under applicable securities laws. Neither independent valuation nor minority shareholder approval was required to complete the related party transaction because the Company relied on exemptions from both requirements under applicable securities laws. In connection with the final tranche closing of the private placement, the Company paid IBK Capital Corp., the agent of the Company in connection with the private placement, and its sub-agents agent's fees consisting of $143,800 (plus applicable taxes and disbursements) in cash and issued 1,438,000 non...