Chile Mining Technologies Raises $2.12 Million in Private Placement
May 08 2012 - 06:18PM
Business Wire
Chile Mining Technologies Inc. (“CMT” or the “Company”)
(PK:LVEN), a mineral extraction company based in the Republic of
Chile, today announced the initial closing of a private placement
with a group of accredited investors for aggregate gross proceeds
of $2,120,000. The Company is seeking to raise aggregate gross
offering proceeds of up to $3.5 million and expects to complete
subsequent closings on or before June 15, 2012.
In connection with the initial closing of the private placement,
the Company issued to investors secured convertible notes in the
aggregate original principal amount of $2,120,000 and warrants to
purchase an aggregate of 530,000 shares of the Company’s common
stock. The convertible notes have a five year term, carry an
interest rate of 11% per annum, are convertible into the Company’s
common stock at an initial price of $2.00 per share, and are
secured by the assets of the Company in the Republic of Chile. The
warrants have a five year term and are exercisable at an initial
price of $2.00 per share. Assuming full conversion and cash
exercise of these convertible notes and warrants issued to
investors, the Company would expect to issue approximately
1,590,000 shares of the Company’s common Stock. The total
outstanding shares of common stock of the Company after such
conversion and exercise would be approximately 11,664,755. Net
proceeds from the offering are expected to fund new facility
expansion, general corporate purposes and working capital.
Halter Financial Securities, Inc. and Euro Pacific Capital Inc.
acted as placement agents for the transaction.
The securities issued in the private placement have not been
registered under the United States Securities Act of 1933, as
amended or the securities laws of any other jurisdiction. Until
they are registered, these securities may not be sold by investors
in the United States, except pursuant to an effective registration
statement or an applicable exemption from the registration
requirements. For more detailed information on this financing, see
the Company’s Current Report on Form 8-K which will be filed with
the Securities and Exchange Commission on or about May 9, 2012.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Chile Mining Technologies Inc.
CMT is a mineral extraction company based in the Republic of
Chile, with copper as its principal “pay metal.” The Company has
refined the electrowin process in a way that permits it to be used
at relatively small mine and/or tailings sites. By utilizing
Minimum Intrusion Non-traditional Input, or MINI, plants, CMT is
able to build scalable, less expensive plants closer to source
material deposits, and operate where it is not economical for
larger open-pit mining companies to operate. As a result, CMT is
able to reduce costs and operate profitably with smaller
deposits.
Safe Harbor Statement
This press release contains certain statements that may include
"forward-looking statements." All statements other than statements
of historical fact included herein are "forward-looking
statements." Such statements include, among others, those
concerning the offering and expected use of proceeds, our expected
financial performance and strategic and operational plans, our
future operating results, as well as all assumptions, expectations,
predictions, intentions or beliefs about our relative strength and
about future events. These forward-looking statements are often
identified by the use of forward-looking terminology such as
“believes,” “expects,” “anticipates”, “will,” “plans” or similar
expressions, involve known and unknown risks and uncertainties.
Although the Company believes that the expectations reflected in
these forward-looking statements are reasonable, they do involve
assumptions, risks and uncertainties, and these expectations may
prove to be incorrect. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company’s actual results could differ materially
from those anticipated in these forward-looking statements. For a
description of the risks and uncertainties that may cause actual
results to differ from the forward-looking statements contained in
this press release, see our most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission (“SEC”), and our
subsequent SEC filings. All forward-looking statements attributable
to the Company or persons acting on its behalf are expressly
qualified in their entirety by these factors. Other than as
required under the securities laws, the Company does not assume a
duty to update these forward-looking statements.