Pampa Metals Closes $3.4m Private Placement

Rhea-AI Summary

Pampa Metals has successfully closed a private placement, raising $3.4 million by issuing 12,581,291 units at $0.27 per unit. Each unit includes one common share and a half purchase warrant, with each whole warrant allowing for the purchase of an additional common share at $0.50 within three years.

The raised funds will support ongoing exploration at the Piuquenes Copper-Gold Porphyry Project, where notable drill results have been reported, including 801 meters at 0.40% Cu, 0.51 g/t Au, and 2.87 g/t Ag. Pampa Metals also paid $176,580 in finder's fees and issued 654,000 finder's warrants.

The company expects to close a final tranche of the private placement for an additional $150,000 on July 15, 2024.

Positive

• Pampa Metals raised $3.4 million through a private placement, strengthening its financial position.
• The funds will support exploration at the Piuquenes Copper-Gold Porphyry Project, which has shown promising drill results.
• The issuance of 12,581,291 units at $0.27 each signifies strong investor interest.

Negative

• The company paid substantial finder’s fees amounting to $176,580, which may affect net proceeds.
• A four-month hold period applies to the securities issued, potentially limiting liquidity in the short term.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / July 11, 2024 / Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FSE:FIR)(OTCQB:PMMCF) is pleased to announce that it has issued 12,581,291 units (Units") at a price of $0.27 per Unit for gross proceeds of $3,396,950 ("Proceeds") under the Fully Subscribed Private Placement detailed in a 26 June 2024 News Release ("Private Placement"). Each Unit consists of one fully paid common share and a half purchase warrant. Each whole warrant (a "Warrant") shall entitle the holder to acquire an additional common share at a price of $0.50 for a period of 3 years after the closing of the Private Placement.

A Form 62-103F3 Required Disclosure by an Eligible Institutional Investor has been filed on SEDAR in connection with the Private Placement.

Proceeds will fund continuing exploration at the Piuquenes Copper-Gold Porphyry Project, where the Company recently reported results from the third drillhole of its maiden program (refer 23 May 2024 News Release) including:

• 801 m @ 0.40% Cu, 0.51 g/t Au, 2.87 g/t Ag (from 54 to 855m (EOH))

  • including 518 m @ 0.53% Cu, 0.73 g/t Au, 3.45 g/t Ag (from 192 to 710)

  • including 176 m @ 0.71% Cu, 0.74 g/t Au, 4.86 g/t Ag (from 192 to 368)

  • including 64 m @ 0.75%, 1.2 g/t Au, 4.60 g/t Ag (554 to 618m)

  • including 32m @ 0.64% Cu, 0.71 g/t Au, 4.54 g/t Ag (642 to 674m)

In connection with the Private Placement, the Company paid aggregate finder's fees of $176,580 and issued 654,000 finder's warrants.

The Company anticipates closing a final tranche of the Private Placement for $150,000 on 15 July 2024.

Any securities issued in connection with the Private Placement are subject to a four-month hold period, in accordance with securities laws and the policies of the Canadian Securities Exchange.

ON BEHALF OF THE BOARD & INVESTOR CONTACT

Joseph van den Elsen | President & CEO | Joseph@pampametals.com

ABOUT PAMPA METALS

Pampa Metals is a copper-gold exploration company listed on the Canadian Stock Exchange (CSE:PM), Frankfurt (FSE:FIR), and OTC (OTCQB:PMMCF) exchanges.

In November 2023, the Company announced it had entered into an Option and Joint Venture Agreement for the acquisition of an 80% interest in the Piuquenes Copper-Gold Porphyry Project in San Juan Province, Argentina.

Qualified Person

Technical information in this news release has been approved by Mario Orrego G. Mr. Orrego G. is a Geologist, a Registered Member of the Chilean Mining Commission and a Qualified Person as defined by National Instrument 43-101. Mr. Orrego G. is a consultant to the Company.

Neither the CSE nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENT

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Pampa Metals expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects" and similar expressions, or that events or conditions "will" or "may" occur. These statements are subject to various risks. Although Pampa Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guaranteeing of future performance and actual results may differ materially from those in forward-looking statements.

SOURCE: Pampa Metals Corp.

View the original press release on accesswire.com

FAQ

What is the amount raised by Pampa Metals in the recent private placement?

Pampa Metals raised $3.4 million in the recent private placement.

How many units did Pampa Metals issue in the private placement?

Pampa Metals issued 12,581,291 units in the private placement.

What are the components of each unit issued in Pampa Metals' private placement?

Each unit consists of one common share and a half purchase warrant.

What is the exercise price of the warrants issued by Pampa Metals?

The exercise price of the warrants is $0.50 per share.

How long is the exercise period for the warrants issued in the private placement?

The exercise period for the warrants is three years.

What are the intended uses of the proceeds from Pampa Metals' private placement?

The proceeds will fund ongoing exploration at the Piuquenes Copper-Gold Porphyry Project.

What are the drill results reported from the Piuquenes Copper-Gold Porphyry Project?

The reported drill results include 801 meters at 0.40% Cu, 0.51 g/t Au, and 2.87 g/t Ag.

When is Pampa Metals expecting to close the final tranche of the private placement?

Pampa Metals expects to close the final tranche of the private placement on July 15, 2024.

How much finder’s fees did Pampa Metals pay in connection with the private placement?

Pampa Metals paid $176,580 in finder's fees.

How many finder’s warrants were issued by Pampa Metals?

Pampa Metals issued 654,000 finder's warrants.