/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Nov. 22, 2016 /CNW/ - Toachi Mining Inc. ("Toachi" or the "Company") (TSXV-TIM) is pleased to announce that it has closed its previously announced bought deal private placement offering of 10,000,000 common shares of the Company (the "Shares") at a price of $0.40 per Share for aggregate gross proceeds to the Company of $4,000,000 (the "Financing"). The Financing was conducted by a syndicate of underwriters led by Beacon Securities Limited, as lead underwriter and sole bookrunner, and including Echelon Wealth Partners Inc. and Dundee Securities Ltd. (collectively, the "Underwriters").
The Company also announced it no longer intends to complete its previously announced concurrent private placement financing arranged by Primary Capital Inc.
The Company paid to the Underwriters a cash commission equal to 6% of the gross proceeds raised under the Financing, other than in relation to any Shares issued to certain "president's list" investors, in respect of which the Underwriters received a cash commission equal to 3% of the gross proceeds raised under the Financing. The Company also issued to the Underwriters compensation options (the "Underwriters' Options") equal to 6% of the Shares issued pursuant to the Financing, other than in relation to Shares issued to certain "president's list" investors, in respect of which the Underwriters were issued Underwriters' Options equal to 3% of such Shares issued. Each Underwriters' Option is exercisable into one common share of the Company at a price of $0.40 until November 22, 2018.
All securities issued in connection with the Financing are subject to a four month hold period plus one day in accordance with applicable Canadian securities laws, commencing on the closing date of the Financing.
The net proceeds from the Offering are intended to be used to advance the Company's La Plata gold-copper-silver-zinc volcanogenic massive sulphide property in Ecuador and for working capital and general corporate purposes. For additional information on the La Plata project, please visit Toachi's website at www.toachimining.com or www.sedar.com.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Toachi Mining Inc.
Toachi brings a disciplined and veteran team of project managers together with a high grade gold-copper-silver-zinc project at La Plata in Ecuador. Toachi is focused on and committed to the development of advanced stage mineral projects throughout the Americas using industry best practices combined with a strong social license from local communities. Subsequent to the closing of the Financing, Toachi Mining has 50,974,935 shares issued and outstanding.
Forward Looking Statements
Certain statements contained in this news release may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information, including, but not limited, to the use of proceeds, is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events and that the Company obtains regulatory approval. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, and delays in regulatory approval, as well as the other risks and uncertainties applicable to the Company as set forth in the Company's continuous disclosure filings filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.
Neither 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.
SOURCE Toachi Mining Inc.
Image with caption: "Toachi Mining Inc. (CNW Group/Toachi Mining Inc.)". Image available at: http://photos.newswire.ca/images/download/20161121_C6032_PHOTO_EN_824014.jpg
For further information: Nick Tintor, President and CEO, Telephone: 416 987 0855, Email: [email protected]