Aldebaran Announces $3 million Private Placement
August 20 2020 - 12:36PM
Aldebaran Resources Inc. ("Aldebaran" or the
"Company", ALDE TSX.V) announces that it intends
to complete a non-brokered private placement offering (the
“Offering”) for aggregate proceeds of up to $3,000,000 through the
issuance of 10,000,000 units of the Company (the “Units”) at a
price of $0.30 per Unit. Each Unit will consist of one common share
(“Common Share”) in the capital of the Company and one-half of one
warrant (each whole warrant, a “Warrant”). Each Warrant will
entitle the holder to purchase one additional Common Share at a
price of $0.70 until the second anniversary of the closing date of
the Offering (the “Expiry Date”).
The Company’s two largest shareholders, Route
One Investment Company LLC (“Route One”) and Sibanye Stillwater
Limited (“Sibanye Stillwater”), have each indicated that they
intend to exercise their rights under their respective Investment
Agreements with the Company to subscribe for their pro-rata share
of the Offering. Route One currently owns approximately 49.48% of
the outstanding shares of the Company and Sibanye Stillwater owns
approximately 19.90%.
Management of the Company has indicated they
intend to subscribe for at least 10% of the Offering.
The proceeds of the Offering will be used to
support the Company’s current activities, which consist of a
re-logging program of existing drill core, preparing a new mineral
resource estimate for the Company’s Altar copper-gold project in
San Juan Province, Argentina, planning an exploration campaign for
the next field season commencing in November of this year, and for
general corporate purposes.
The Offering is scheduled to close on or about
September 14, 2020, and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals of the
TSX Venture Exchange. The securities to be issued under this
Offering will be offered by way of private placement exemptions in
various provinces of Canada. The Units to be issued under this
Offering may also be offered outside of Canada, pursuant to
applicable exemptions and in the United States on a private
placement basis pursuant to exemptions from the registration
requirements of the United States Securities Act of 1933, as
amended. The Company may pay a cash finder’s fee of 5% to qualified
finders in respect to a portion of the Offering.
As noted above, certain insiders of Aldebaran
will acquire securities in the Offering. Any such
participation would be considered a “related party transaction” as
defined under Multilateral Instrument 61-101. The Company is
relying on certain exemptions in 61-101 based on the size of the
Offering in connection therewith.
The securities referred to in this news release
have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold
within the United States or to, or for the account or benefit of,
U.S. persons absent U.S. registration or an applicable exemption
from the U.S. registration requirements. This release does not
constitute an offer for sale of, nor a solicitation for offers to
buy, any securities in the United States. Any public offering
of securities in the United States must be made by means of a
prospectus containing detailed information about the issuer and its
management, as well as financial statements.
For further information please
contact:
Aldebaran Resources Inc.
John E. Black |
CEO / Director |
Phone: |
+1 303 618-7797 mobile |
|
+1 720 514-9036 office |
Email: |
john.black@aldebaranresources.com |
|
|
About Aldebaran Resources
Inc.
Aldebaran is a mineral exploration company that
was spun out of Regulus Resources Inc. in 2018 and has the same
core management team. Aldebaran acquired the Rio Grande copper-gold
project located in Salta Province, Argentina from Regulus along
with several other early stage projects in Argentina. Aldebaran
also has the right to earn up to an 80% interest in the Altar
copper-gold project in San Juan Province, Argentina from Sibanye
Stillwater. Altar hosts a large porphyry copper-gold system with
mineralization currently defined in three distinct zones. The Altar
project forms part of a cluster of world-class porphyry copper
deposits which includes Los Pelambres (Antofagasta Minerals), El
Pachon (Glencore), and Los Azules (McEwen Mining). A total of 259
drill holes (124,701 m) have been completed at Altar between 1995
and 2019. In mid-2018 an updated NI 43-101 resource was prepared
for Altar by Independent Mining Consultants Inc. based on the
drilling completed up to 2017. The updated Altar NI 43-101 report
is available on Aldebaran's SEDAR profile at www.sedar.com.
Aldebaran’s primary focus is the Altar project with a view to
discovering new zones with higher-grade mineralization.
Forward-Looking Statements
Certain statements regarding Aldebaran,
including management's assessment of future plans and operations,
may constitute forward-looking statements under applicable
securities laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Aldebaran's control.
Often, but not always, forward-looking statements or information
can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate" or "believes" or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be
achieved.
Specifically, and without limitation, all
statements included in this press release that address activities,
events or developments that Aldebaran expects or anticipates will
or may occur in the future, including the proposed
exploration and development of the Altar project described
herein, and management's assessment of future plans and operations
and statements with respect to the completion of the Offering,
completion of a new resources estimate and anticipated exploration
and development programs, the impact of the COVID-19 pandemic on
the Canadian and worldwide economy, the Company’s workforce, world
wide demand for commodities and the Company’s business generally,
may constitute forward-looking statements under applicable
securities laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Aldebaran's control.
These risks may cause actual financial and operating results,
performance, levels of activity and achievements to differ
materially from those expressed in, or implied by, such
forward-looking statements. Although Aldebaran believes that
the expectations represented in such forward-looking statements are
reasonable, there can be no assurance that such expectations will
prove to be correct. The forward looking statements contained in
this press release are made as of the date hereof and Aldebaran
does not undertake any obligation to publicly update or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities law.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
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