2013-08-29 20:13:44 -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Vancouver, British Columbia CANADA, August 29, 2013 /FSC/ - Peruvian Precious Metals Corp (PPX - TSX Venture, PPX - BVL"Peruvian" or the "Company announces that it has closed the first tranche of its brokered private placement (the "Offering") of units (the "Units") under the terms previously disclosed on August 2, 2013.
The first tranche consisted of 5,000,000 Units at a price of $0.15 per Unit, generating gross proceeds of $750,000. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant Each Warrant entitles the holder, on exercise thereof, to purchase
one additional Common Share at a price of $0.25 for a period of 24 months from the completion of the Offering, provided that if the daily volume weighted average price for twenty (20) consecutive days of trading of Peruvian shares on the TSX Venture Exchange (or such other stock exchange on which shares of Peruvian are listed) exceeds $0.45 per share, the expiry date of the Warrants may be accelerated to the day which is thirty (30) calendar days after notice of acceleration has been sent by Peruvian to Warrant holders.
Peruvian engaged Marquest Capital Markets as agent (the "Agent") to conduct the Offering on a best efforts basis. The Company agreed to pay the Agent a cash fee equal to 8% of the gross proceeds raised under the Offering and to issue the Agent non-transferrable warrants ("Agent's Warrants") to purchase that number of Common Shares equal to 8% of the aggregate number of Units sold in the Offering (together, the "Agency Fee Each Agent's Warrant entitles the Agent to purchase one Common Share at a price of $0.25 for a period of 24 months following the closing date of the Offering.
In connection with the closing of the first tranche of the Offering, the Company paid the Agent a total cash commission of $60,000 and issued a total of 400,000 Agent's Warrants.
All securities issued pursuant to the first tranche of the Offering are subject to a hold period which expires on December 30, 2013.
The Offering is for up to 10,000,000 Units for aggregate gross proceeds of up to $1,500,000. The completion of subsequent tranches of the Offering will be subject to certain conditions, including final approval of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peruvian Precious Metals Corp.
Kimberly Ann Arntson, Vice President - Corporate Development
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Certain disclosure in this release, including statements regarding the terms of the Offering, the possible completion of the Offering and the intended use of proceeds from the Offering, may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals to complete the Company's planned Offering and exploration activities and that the Company is able to complete the Offering. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks are detailed from time to time in the Company's filings with the appropriate securities commissions, and may include, among others, that the Offering will not complete, market conditions, commodity prices, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or failure to obtain required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdown and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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