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VANCOUVER, Sept. 29, 2016 /CNW/ - Mirasol Resources Ltd.
(TSX-V: MRZ) ("Mirasol" or the "Company") is pleased
to announce the completion of its rights offering (the "Rights
Offering") which was announced on August
10, 2016, and expired at 5:00 pm
(PDT) on September 19, 2016.
The shareholders of Mirasol exercised Rights, and the Standby
Guarantors purchased shares, resulting in the issue of a total
4,166,667 common shares (the "Shares"). The Shares issued
pursuant to the Rights Offering were issued at $2.40 per share for gross proceeds of CDN
$10,000,000. Following closing of the
Rights Offering there were a total of 49,021,828 common shares of
the Company issued and outstanding.
The number of Shares issued pursuant to the basic subscription
privilege was 2,323,938 Shares. Of these, 1,200,521 Shares were
issued to insiders and 1,123,417 Shares were issued to other
shareholders. A total of 1,055,081 Shares were issued pursuant to
the additional subscription privilege. Of these, 29,050 Shares were
issued to insiders and 1,026,031 Shares were issued to other
shareholders.
A total of 787,648 Shares were issued to a group of guarantors
led by John Tognetti, including
Exploration Capital Partners 2005 Limited Partnership, Carlo Civelli, EuroPac Gold Fund, and
Paul Lee (collectively, the
"Standby Guarantors") pursuant to the Standby Guarantee
Agreement entered into on August 9,
2016 (the "Standby Agreement"). In consideration for
the Standby Agreement, the Standby Guarantors were issued share
purchase warrants to purchase 500,000 common shares of the Company
at a price of $2.40 per share until
March 23, 2017 (the "Bonus
Warrants"). No fees or commissions were paid in connection with
the Rights Offering other than the issue of the Bonus Warrants and
the Company's obligation to pay the Standby Guarantors' expenses in
connection with negotiating the Standby Agreement to a maximum of
$10,000. John
Tognetti is a director and the controlling shareholder of
the Company.
Mirasol intends to use the proceeds of the Rights Offering for
working capital. Following closing of the Rights Offering,
Mirasol's cash reserves were approximately $27,200,000.
About Mirasol
Mirasol is a project generation company focused on the discovery
of precious metals and copper resources in the Americas. Strategic
joint ventures with metal producers have enabled Mirasol to advance
its priority projects, focused in high-potential regions in
Chile and Argentina. Mirasol employs an integrated
generative and on ground exploration approach combining leading
edge technologies and experienced exploration geoscientists to
maximize the potential for discovery. Mirasol is in a strong
financial position and has a significant portfolio of drill ready
gold-silver exploration projects located in Chile and Argentina.
Dana Prince
Chairman of the Board
Cautionary statement regarding forward-looking
information
This news release contains 'forward-looking statements'
within the meaning of applicable securities laws. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by words such as the
following: expects, plans, anticipates, believes, intends,
estimates, projects, assumes, potential and similar expressions.
Forward-looking statements also include reference to events or
conditions that will, would, may, could or should occur, including,
without limitation, the intended use of proceeds of Mirasol's
rights offering. These forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while based
on management's expectations and considered reasonable at the time
they are made, are inherently subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-statements,
including, without limitation: uncertainties related to raising
sufficient financing to fund planned work in a timely manner and on
acceptable terms; changes in planned work resulting from
logistical, technical or other factors; the possibility that
results of work will not fulfill projections/expectations and
realize the perceived potential of the Company's projects;
uncertainties as to whether the rights offering will be completed;
delays in obtaining the approval of the TSX Venture Exchange; the
costs to completion of the rights offering; and other risks and
uncertainties, including those described in Mirasol's public
disclosure documents on SEDAR at www.sedar.com. As a result,
readers are cautioned not to place undue reliance on these
forward-looking statements. The forward-looking statements
contained in this news release are made as of the date of this
release. Unless required by law, Mirasol has no intention to and
assumes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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.
SOURCE Mirasol Resources Ltd.