Chakana Copper arranges $1.25-million financing

Executive Summary

• Chakana Copper Corp. announced a non‑brokered private placement of up to 17,857,143 units at $0.07 per unit, targeting gross proceeds of up to $1.25 million.
• Each unit includes one common share and one warrant allowing purchase of an additional share at $0.09 for three years; proceeds will fund new opportunity evaluation, exploration, and general working capital.
• The company also disclosed a shares‑for‑debt settlement, issuing 3,523,214 common shares (valued at $0.07 per share) to settle $246,625 of outstanding payables and writing off an additional $354,669 of board/management debt.

Key Details

• Private Placement Structure:
• Up to 17,857,143 units (each = 1 common share + 1 warrant).
• Unit price: $0.07 per unit.
• Gross proceeds target: $1.25 million.

• Warrants: right to purchase one additional share at $0.09 per share, exercisable for three years from closing.

• Use of Proceeds:

• Evaluate new opportunities.
• Exploration activities (primarily La Joya project).

• General working capital.

• Insider Participation & Exemptions:

• Insiders may subscribe under MI 61‑101 exemptions; no formal valuation or minority shareholder approval required.

• Regulatory Conditions:

• Subject to TSX Venture Exchange approval and other regulatory clearances.
• Issued securities subject to a hold period of four months and one day from closing.

• No finders’ fees will be paid.

• Shares‑for‑Debt Settlement:

• Settlement of $246,625 in outstanding payables to directors, officers, and consultants via issuance of 3,523,214 common shares at a deemed price of $0.07 per share.
• Additional board/management debt written off: $354,669.

• Debt‑related shares also subject to the same four‑month‑plus hold period and TSX‑V final approval.

• Additional Notes:

• The private placement is non‑brokered and not a public offering.
• All transactions are contingent upon required regulatory approvals.