Minera Alamos closes $3.5-million private placement

Executive Summary

• Minera Alamos Inc. has closed a private placement offering of C$3.5 million, issuing 8.75 million units at 40 cents per unit.
• Darren Blasutti, the company's newly appointed Executive Vice-President, Corporate Development, subscribed for C$1 million worth of units (2.5 million units), triggering related party transaction disclosures under TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101.
• The company also announced a separate settlement of a C$2 million contractual obligation with an arm's-length third party via the issuance of shares, related to insurance and bonding for the recently acquired Pan operating complex.

Key Details

• Private Placement Structure: Issuance of 8.75 million units at a price of 40 cents per unit.
• Warrant Terms: Each unit includes one purchase warrant, entitling the holder to acquire one additional common share at an exercise price of 70.5 cents for a period of 36 months.
• Related Party Subscription: Darren Blasutti purchased 2.5 million units for C$1 million.
• Regulatory Exemptions: The company relied on Section 5.5(a) of MI 61-101 (exemption from formal valuation) and Section 5.7(a) of MI 61-101 (exemption from minority approval) because the fair market value of securities distributed to interested parties did not exceed 25% of the company's market capitalization.
• Hold Period: All securities issued are subject to a hold period of four months and one day.
• Finder's Fees: No finders' fees were paid in connection with the closing.
• Contractual Settlement: Subject to TSX Venture Exchange approval, the company will settle a C$2 million obligation by issuing 4,651,163 shares at 43 cents per share.
• Settlement Context: The C$2 million obligation is related to insurance and bonding associated with the recently acquired Pan operating complex.

Notable Quotes

• None provided in the text.