Pampa Metals Completes First $1.136 Million Tranche of Private Placement to Drill Block 4 Discovery
VANCOUVER, BC /ACCESSWIRE/March 21, 2022/ Pampa Metals Corp. (“Pampa Metals” or the “Company”) (CSE: PM) is pleased to announce that it has closed the first tranche of a private placement of 3,786,700 units (“Units”) at a price of 0.30 $ per Unit for gross proceeds to the Company of $1,136,100. The Company will continue to raise funds with a total funding target of $4.0 million by issuing a total of 13,333,333 Units.
“The company is currently carrying out a very active exploration campaign during this strong copper market. Pampa Metals has a project being drilled by partner JV Austral Gold and based on recent results Block 4 is the target. immediate for Pampa Metals to start its own new drilling,” said A. Paul Gill, CEO.
Block 4 Discovery
Pampa Metals completed six trenches totaling 2.3 km, of which 5 trenches successfully exposed bedrock, at its Buenavista target on its Block 4 project in November-December 2021 (see press release dated February 8, 2022). Trenching aimed to improve exposures of porphyry-like quartz veinlets and copper oxide occurrences associated with a poorly exposed central porphyry intrusion, which spatially coincides with a magnetic anomaly detected by the Pampa Metals ground magnetic survey. . The magnetic anomaly led directly to the discovery of the stockwork-veined porphyry intrusion through careful geological field monitoring. The trenching area at Buenavista measures approximately 700m north-south and 900m east-west, and the stockwork area of porphyry cores and quartz veins has not been excavated or drill tested historically. Encouraging assay results from the trenching program were recently released (see March 15, 2022 press release), with highly anomalous copper, molybdenum and gold values.
Private placement details
Each $0.30 unit consists of one common share and one-half common share purchase warrant of the Company. Each whole warrant (a “Warrant”) is exercisable into one common share of the Company at an exercise price of $0.50 per share for a period of 24 months from the closing date. The Company may reduce the exercise period of the warrants to 30 days from the date on which the Company notifies the holders of warrants that the weighted average trading price of the common shares of the Company on the Canadian Securities Exchange is $0.90 or more for a period of 10 consecutive trading days.
Proceeds from the private placement will be used for ongoing work programs on the Company’s Chilean projects, including drilling, and for general corporate purposes.
In connection with the Private Placement, the Company will pay a finder’s fee of 8% in cash and 8% in warrants from the sale of Units to third parties recruited by the intermediaries. Each warrant will entitle its holder to purchase one common share of the Company at a price of $0.50 per share for a period of 24 months from the closing date.
A Company insider purchased 700,000 Units for gross proceeds of $210,000. The participation of an insider of the Company in the Private Placement constitutes a “related party transaction” within the meaning of National Instrument 61-101 respecting Protection of Minority Holders of Securities in Special Transactions (“NI 61-101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 under Section 5.5(b) and Section 5.7(1)(b) as the fair market value of the insider participation does not exceed 25% of the market capitalization of the Company.
The securities sold under the private placement will be subject to a four month hold period under Canadian securities laws and the policies of the Canadian Securities Exchange.
ABOUT PAMPA METALS
Pampa Metals is a Canadian company listed on the Canadian Stock Exchange (CSE:PM) as well as the Frankfurt (FSE:FIRA) and OTC (OTCQB®:PMMCF) stock exchanges. Pampa Metals has a very promising 62,000 hectare, wholly owned portfolio of eight copper and gold projects located along proven mineral belts in Chile, one of the world’s leading mining jurisdictions. The company is actively advancing four of its projects, including completed and planned drill tests, and has two additional projects on option with Austral Gold Ltd., with Austral already testing its first target on Pampa Metals soil. The company also recently signed an agreement with VerAI Discoveries Inc. giving Pampa Metals access to the latest artificial intelligence technologies in mining exploration, as well as an additional 18,700 hectares of highly prospective land in the heart of the belts. highly productive minerals. from northern Chile.
The Company’s vision is to create value for shareholders and all other stakeholders by making a major discovery of copper or gold along the main mineral belts of Chile, using the best geological and technological methods. For more information, please visit the Pampa Metals website www.pampametals.com.
ON BEHALF OF COUNCIL
A.Paul Gill | Chief Executive Officer
Neither CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain statements that may be considered “forward-looking statements”. All statements in this release, other than statements of historical fact, that address events or developments that Pampa Metals expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”. , “estimates”, “projects”, “potential”, “indicates” and similar expressions, or that events or conditions “will”, “should”, “could”, “might” or “should” occur. These include statements regarding our future exploration plans and the results of existing plans. These statements are subject to various risks, including that results may not be as anticipated, or that timing may be affected by travel and work restrictions imposed due to the Covid-19 pandemic. Although Pampa Metals believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements.
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