TORONTO, Oct. 7, 2016 /CNW/ - AZARGA METALS CORP. ("Azarga Metals" or the "Company") (TSX-V:AZR) announces that on 7 October 2016, it closed a previously announced non-brokered private placement through the issuance of 3,437,500 units at a price of $0.32 per unit (the "Unit") for gross proceeds of $1,100,000. Each Unit consists of one common share of the Company (each, a "Share") and one-half of one Share purchase warrant (each whole warrant, a "Warrant"). One Warrant entitles the holder thereof to purchase one Share of the Company at a price of $0.40 per Share for a period of 12-months from the closing of the Private Placement. The Shares issued in connection with the private placement are subject to a four-month hold period expiring on 8 February 2017. The Company paid finders' fees of $8,100.
The proceeds of the financing will primarily be used to fund the expansion to the first phase exploration program at Azarga Metals' Unkur Silver-Copper Project as announced by the Company on 21 September 2016. Such expansion includes an increase in drilling from approximately 3,000 linear meters to approximately 5,000 linear meters together with the addition of trenching and a ground magnetic survey. Any remaining proceeds will be used for general corporate purposes.
SHARES FOR SERVICES
As reported in the Company's financial statements, with effect from June 1, 2016, the Company agreed to pay Blake Steele a monthly fee of $2,500 and the three non-executive directors of the Company fees of $1,500 a month. All fees shall be paid in arrears on a quarterly basis by the issue of common shares of the Company to be priced in the context of the market on the last day of each calendar quarter.
About Azarga Metals Corp.
Azarga Metals is a mineral exploration and development company that owns 60% of the Unkur Silver-Copper Project in the Zabaikalsky administrative region in eastern Russia.
AZARGA METALS CORP.
Dorian L. (Dusty) Nicol, President and CEO
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.
This news release contains forward-looking statements that are based on the Corporation's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such factors include, among others: the actual results of current planned exploration activities; conclusions of economic evaluations; changes in project parameters as plans to continue to be refined; possible variations in ore grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; and fluctuations in metal prices. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Corporation disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE Azarga Metals Corp.
For further information: Doris Meyer, at +1 604 536-2711 ext 6, or visit www.azargametals.com