AndeanGold Announces Closing of First Tranche of $1,200,000 Private
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/15/12 -- AndeanGold
Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(BVL:AAU) is
pleased to announce that it has closed (the "Closing") the first
tranche of its previously announced $1,200,000 private placement (the
"Placement") (news release of November 2, 2012). The Placement is
being made on a non-brokered basis in Canada, and on a brokered basis
in South America. Kallpa Securities SAB ("Kallpa"), based in Lima,
Peru, is agent for any units sold to qualified South American
investors. Kallpa was the sponsoring broker to the Company's recent
listing on the Lima Stock Exchange.
Pursuant to Closing, the Company has issued an aggregate 9,975,000
units ("Units") at a price of $0.10 per Unit to raise aggregate gross
proceeds $997,500. Each Unit consists of one common share of the
Company (a "Share") and one-half of one common share purchase
warrant, each whole such warrant (a "Warrant") entitling the holder
to acquire one additional common share (a "Warrant Share") of the
Company at a price of $0.15 for a period of eighteen months from the
Closing. The Company anticipates that a second tranche closing of the
Placement will take place later in November 2012.
In accordance with securities legislation currently in effect in
Canada, the Shares, the Warrants and the Warrant Shares will be
subject to a "hold period" of four months plus one day from the date
of closing of the private placement.
The Company will pay finders' fees with respect to the non-brokered
offering and an agent's commission to Kallpa on portions of the first
tranche in the aggregate amount of $61,600 and 616,000 Warrants, each
such Warrant entitling the holder to acquire one additional Share of
the Company at a price of $0.15 for a period of eighteen months from
The proceeds of the Placement will be used principally to fund future
exploration programs on the Company's Urumalqui Project in Peru, as
well as an updated mineral resource estimate and option payment
obligations, and for general working capital purposes.
About AndeanGold Ltd:
AndeanGold Ltd. is engaged in the acquisition, exploration and
potential development of primarily precious metals properties,
principally in Peru and Ecuador. The focus of the Company's
exploration activities is presently in advancing its Urumalqui
Project, as well as pursuing mineral property acquisitions, in Peru.
In Ecuador, the Company's activities have been limited to
administrative and legal matters due to the Mining Mandate issued by
the Ecuador Constituent Assembly on April 18, 2008. In November 2009,
President Correa signed the Mining Regulations into law pursuant to
the requirements of the new Mines Law, which was passed in January
2009. This was the final legal precursor to the re-initiation of
exploration and mining development in Ecuador. The Company has been
issued new mining titles under the new Mines law to its three key
Ecuadorian projects and has filed the requisite documents with the
Ministry of Non-Renewable Natural Resources and Ministry of
Environment ("MRNNR") in support of the Company's request to renew
exploration programs on its key projects in Ecuador. In September
2012, the Company received authorization from the MRNNR to renew
exploration programs on its Curiplaya Project.
Please refer to AndeanGold's website at www.andeangoldltd.com for
further information on the Company's projects and activities.
On Behalf of the Board of Directors of ANDEANGOLD LTD.
Anthony F. Ciali, President, CEO and Director
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.
Ascenta Capital Partners Inc.
604.684.4743 ext. 225 or Toll free: 1.866.684.4743 ext. 225
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