Chile Mining Technologies Closes Additional $1 Million in Private Placement
June 07 2012 - 5:41PM
Business Wire
Chile Mining Technologies Inc. (“CMT” or the “Company”)
(PK:LVEN), a mineral extraction company based in the Republic of
Chile, today announced that it has consummated its second and final
closing of the private placement financing which began on May 8,
2012 with a group of accredited investors for an aggregate gross
proceeds of $1,015,000. Therefore, the Company raised total of
$3,135,000 from this private placement.
In connection with the second closing, the Company issued to
investors secured convertible notes in the aggregate original
principal amount of $1,015,000 and warrants to purchase an
aggregate of 507,500 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 of the convertible notes and cash
exercise of the warrants, the Company would expect to issue
approximately 761,250 shares of the common stock. The total
outstanding shares of common stock of the Company after such
conversion and exercise would be approximately 12,476,755. Net
proceeds from the offering are expected to fund new facility
expansion, general corporate purposes and working capital.
Euro Pacific Capital Inc. and Halter Financial Securities, 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 June 13,
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.