/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.