Altan Rio Announces Debt Settlement, Update on Previously Announced Private Placement and Grant of Options
VANCOUVER, Feb. 20, 2014 /CNW/ - Altan Rio Minerals Limited ("Altan Rio" or the "Company") announces that it has reached agreement with a number of related party and non-related party creditors to settle debt in the total amount of CA$1,429,259 by the issuance of 20,417,983 common shares of the Company at a deemed price of $0.07 per share (the "Shares for Debt Transaction"), a condition precedent of its private placement with the European Bank for Reconstruction and Development ("EBRD") originally announced January 8, 2014.
The Company is continuing with its private placement with EBRD originally announced January 8, 2014. Under the private placement, EBRD will purchase 16,666,000 common shares of the Company at $0.06 per share for gross proceeds of CA$999,960 pursuant to the first tranche subscription (the "First Tranche Subscription") of the larger potential investment previously announced. Following completion of the First Tranche Subscription it is anticipated that EBRD will hold approximately 18.69% of the issued and outstanding common shares of the Company, taking into account the common shares expected to be issued in connection with the Shares for Debt Transaction.
Both of the foregoing transactions are subject to the approval of the TSX Venture Exchange (the "Exchange"). In addition to Exchange approval, the First Tranche Subscription remains subject to certain other conditions precedent, including completion of the Shares for Debt Transaction and the Company obtaining certain required government documentation related to its exploration activities in Mongolia.
Proceeds of the First Tranche Subscription are expected to be used to advance the Company's exploration activities in Mongolia and provide working capital.
The Company also announces that it has granted to directors, officers, consultants and management of the Company, stock options (the "Options") to purchase a total of 1,420,000 common shares at a price of $0.10 per common share. The Options are exercisable for a period of 5 years ending February 20th, 2019 and have been granted in accordance with the terms of the Company's current stock option plan.
About Altan Rio
Altan Rio, founded in 2007, is based in Vancouver BC, Canada. Using innovative exploration targeting techniques and leveraging long-term in-country experience, the company explores large-scale gold and copper projects in Mongolia, one of the world's most prospective mineral regions. The Company's license holdings in Mongolia, which total more than 103,341 hectares (255,361 acres), contain significant zones of newly identified primary gold and copper mineralization across a very large area of unexplored ground.
On behalf of Altan Rio Minerals Limited,
Evan Jones, President & CEO
This press release may contain forward looking statements including those describing Altan Rio's future plans and the expectations of management that a stated result or condition will occur. Any statement addressing future events or conditions necessarily involves inherent risk and uncertainty. Actual results can differ materially from those anticipated by management at the time of writing due to many factors, the majority of which are beyond the control of Altan Rio and its management.
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.
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