Pampa Metals Upsizes Fully Subscribed Private Placement to $3.5m

Rhea-AI Summary

Pampa Metals upsized its non-brokered private placement to $3.5 million, issuing 12,951,852 units at $0.27 each. Each unit includes one common share and a half purchase warrant, with each warrant allowing the purchase of an additional share at $0.50 within three years. This decision follows strong support from long-term shareholders and a natural resources fund. The proceeds will fund exploration at the Piuquenes Copper-Gold Porphyry Project, which has shown promising results from its third drill hole, including significant mineralization of copper, gold, and silver. The first tranche closes around June 28, and the second around July 5. Finder's fees may be involved, and the securities will have a four-month hold period.

Positive

• Upsized private placement to $3.5 million.
• Strong support from long-term shareholders and a natural resources fund.
• Proceeds will fund exploration at the Piuquenes Copper-Gold Porphyry Project with promising drill results.
• Each unit includes a common share and a warrant for future share acquisition, potentially increasing shareholder value.

Negative

• Securities issued will be subject to a four-month hold period.
• Potential dilution of existing shareholders' equity due to new unit issuance.

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

VANCOUVER, BC / ACCESSWIRE / June 26, 2024 / Pampa Metals Corp. ("Pampa Metals" or the "Company") (CSE:PM)(FRA:FIRA)(OTCQB:PMMCF) has upsized the non-brokered private placement (the "Placement") announced on 19 June 2024 to 12,951,852 units ("Units") at a price of $0.27 per Unit for gross proceeds of $3,497,000 ("Proceeds"). Each Unit will consist 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 Placement.

The Placement has been upsized to accommodate supportive long-term shareholders alongside an investment by a natural resources fund.

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)

The first tranche of the Placement is scheduled to close on or around Friday 28 June, with a second and final tranche scheduled to close on or around Friday 5 July. The Company may pay finder's fees of up to 6% in cash and 6% in finder's warrants from the sale of Units to third parties sourced by finders. Finder's warrants will be on the same terms as the Warrants issued under the Placement.

Any securities issued in connection with the Placement will be subject to a four-month hold period, in accordance with securities laws and the policies of the Canadian Securities Exchange, as applicable. The Placement is subject to CSE acceptance.

ON BEHALF OF THE BOARD	INVESTOR CONTACT
Joseph van den Elsen | President & CEO	Joseph van den Elsen | 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.

Related Documents

https://storage.googleapis.com/accesswire/media/881838/pm--nr-2024-6-26--fully-subscribed-pp-upsized-to-35m.pdf

SOURCE: Pampa Metals Corp.

View the original press release on accesswire.com

FAQ

What is the value of the upsized private placement by Pampa Metals (PMMCF)?

Pampa Metals upsized its private placement to $3.5 million.

What will the proceeds from Pampa Metals' private placement be used for?

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

When are the tranches for Pampa Metals' private placement expected to close?

The first tranche is scheduled to close around June 28, and the second around July 5.

What is included in each unit of Pampa Metals' private placement?

Each unit includes one common share and a half purchase warrant, with each warrant allowing the purchase of an additional share at $0.50 within three years.

What are the terms of the finder's fees related to Pampa Metals' private placement?

Finder's fees may be up to 6% in cash and 6% in finder's warrants, with warrants issued under the same terms as placement warrants.