TORONTO, Jan. 19 /CNW/ - Xtierra Inc. (TSX-V - XAG) ("Xtierra" or the "Company"), announces a non brokered private placement of up to $5,000,000 consisting of up to 25.0 million units ("Units") at $0.20 per unit, each unit consisting of one common share and one-half a common share purchase warrant, each whole warrant entitling the holder to purchase one common share at $0.30 per share for one year. The offering will be made available to accredited investors in Canada and eligible international investors. No securities will be offered in the United States of America or to United States residents.
Proceeds of the issue will be used to fund further metallurgical testing and feasibility work on Xtierra's Bilbao silver-zinc-copper project in Zacatecas, Mexico, and for expenses of the offering, general corporate purposes and working capital.
All securities issued will subject to a hold period of four months and one day from the date of issue in accordance with applicable securities laws and the requirements of the TSX Venture Exchange.
Closing of the placement is anticipated by the end of February 2010.
As part of this private placement , Xtierra announces that it has entered into a subscription agreement with TayCon Corporation, a capital pool company, whereby TayCon has subscribed for 2.5 million units for aggregate proceeds of $500,000 with the option to purchase a further 125,000 units at any time prior to Closing. Completion of the subscription is conditional upon the prior approval of the transaction by TayCon's shareholders and the acceptance of the transaction by the TSX Venture Exchange as TayCon's qualifying transaction. This subscription will be closed as soon as possible following such approvals. Xtierra shares and warrants purchased by TayCon will be distributed to TayCon's shareholders in proportion to their shareholdings and TayCon will be subsequently dissolved.
About Xtierra Inc.
Xtierra Inc. is a Toronto based exploration and development company listed on the TSX Venture Exchange. Xtierra's shares trade under the symbol "XAG". Xtierra has 49,862,003 shares issued and outstanding. Xtierra is conducting a feasibility study on its 100% owned Bilbao silver-zinc-copper project in Zacatecas, Mexico. Xtierra's objective is to become a mid-tier producer of precious and base metals through the development of its Bilbao and Laguna projects, both located in the Central Mexican Mineral Belt in the State of Zacatecas, as well as through exploration, organic growth and M & A opportunities.
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 the accuracy of this release.
SOURCE XTIERRA INC.
For further information: For further information: visit www.xtierra.ca or contact: Terence McKillen, President & Chief Executive, (416) 362-8243; Tim Gallagher, Director, (416) 925-0090; Alejandro Alanis, Director Finance & Administration (Mexico), +52 (492) 925-0804