NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Vancouver, British Columbia – July 14, 2015 – Peruvian Precious Metals Corp. (the “Company”), is pleased to announce the successful completion of a non-brokered private placement of 42,311,740 common shares for gross proceeds of $4,865,850 ($0.115/ common share). The Company intends to use the proceeds for the acquisition of a gold and silver processing plant in Peru. Details on the acquisition of the plant can be found in the Company’s news release dated February 5, 2015.
In consideration for introducing the subscriber to the private placement, the Company issued a total of 3,384,940 common shares to Abraham Gleiser Ludmir, Tomas Silva, GPI Valores SAB and GPI Asset Management S.A., arm’s length finders, representing 8% of the shares sold to the subscriber.
Securities issued under the private placement will be subject to a four month hold period expiring on November 14, 2015, in accordance with applicable Canadian securities laws.
The 42,311,740 common shares acquired in the private placement by Dante Andre Marsano Peschiera of 210, Las Torcazas, La Pradera – La Molina, Lima 12, Peru represent 19.59% of the issued and outstanding common shares. Mr. Marsano does not hold any other securities of the Company at this time.
Mr. Marsano acquired the securities for investment purposes and intends to evaluate his investment in the Company and to increase or decrease his beneficial shareholdings from time to time as he may determine appropriate for investment purposes.
A copy of the early warning report being filed by Mr. Marsano may be obtained on SEDAR at www.sedar.com or by contacting Kimberly Ann Arntson at +1.530.414.4400.
Kimberly Ann Arntson, Chief Financial Officer and VP Corporate Development commented: “With the completion of this financing, at a significant premium to market price, the company has been able to make its payment to AM Mining SAC (AMM) and initiate the design, engineering, procurement and construction of a 350 metric tonne/day gold and silver processing facility at our Igor Project in northern Peru. This is a game-changing milestone for the Company. With the completion of this financing, the Company has satisfied it’s capital requirements for building and owning it’s own processing plant, providing multiple options for the company to grow in the future”.
As previously described in the Company’s press release of February 5, 2015, AMM will construct and operate on behalf of the Company, a 350 metric tonne per day (“350 mt/d”) gold and silver processing plant, utilizing CIP/CIL and Merrill-Crowe precious metal recovery, capable of producing precious metal dore at the Company’s Igor project in northern Peru. AMM, in conjunction with sister company Fundición Callao, SAC (“Fundición”), has over 60 years of mining, mineral processing and plant construction experience, with a hemisphere-wide client and project resume.
The Company and AMM have completed preliminary engineering and design work for the processing plant based on available and on-going metallurgical test work. Pending completion of the metallurgical testing, the processing plant will consist of a crushing/grinding circuit with a process capacity of 350 mt/d. Gold and silver recovery will be accomplished with either CIP or CIL leaching, Merrill Crowe silver recovery and a conventional desorption circuit. All support facilities, including analytical laboratory, CN destruction circuit, rock and crushed material loading and feeding conveyors, etc. are included in the proposed plant which is intended to be a “turn-key” facility. The processing plant will have the capacity to produce gold and silver dore at the Igor site. Plant equipment will be procured and/or fabricated by Fundición at its factory in Lima and then transported to the Igor project site for assembly. All new components will be utilized. The Company will provide updates as the plant project moves through the design, engineering and permitting process.
Although the Company does not intend this press release to be interpreted as a decision to commence commercial production, it should be noted that a production decision in the absence of a feasibility study of mineral reserves that demonstrates economic and technical viability has increased uncertainty and higher risk of economic and technical failure associated with any production decision.
About Peruvian Precious Metals Inc.: Peruvian Precious Metals (PPX: TSX.V; BVL) is currently exploring and evaluating mine development opportunities at its Igor Mine Project in Northern Peru. The Igor project explores several high grade, gold and silver mineralized high-angle structures that host significant gold and silver resources. The Callanquitas Structure at the Igor Project contains Inferred gold and silver resources of 7,189,000 tonnes grading 1.94 gpt gold and 71.8 gpt silver containing 448,500 ounces of gold and 16,600,000 ounces of silver at a cutoff grade of 1.5 gpt gold equivalent. Included within this resource estimate is a higher grade zone consisting of 2,730,000 tonnes grading 2.73 gpt gold and 119.1 gpt silver containing 239,400 ounces of gold and 10,500,000 ounces of silver using a 3.0 gpt gold equivalent cutoff grade (Please see Technical Report as amended on September 27, 2013 entitled “Technical Report on the Callanquitas Structure, Igor Mine Project, Northern Peru, South America”, available on the Company’s web site or SEDAR). Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.
The Company is continuing its exploration and development of the Igor Project including an underground test mining and bulk sampling program designed to generate data to evaluate future mine development options at Igor. The Company, with partner AM Mining SAC, is also constructing a 350 mt/d gold and silver processing plant, utilizing CIP/CIL and Merrill-Crowe precious metal recovery, capable of producing precious metal dore at the Company’s Igor project in northern Peru. The plant will be utilized to evaluate process metallurgy during the test mining program.
All scientific and technical information in this press release has been reviewed and approved by Quentin J. Browne, P.Geo., Independent Consulting Geologist to Peruvian Precious Metals, who is a qualified person under the definitions established by National Instrument 43-101.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“) or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, unless an exemption from such registration is available.
On behalf of the Board of Directors
Brian J. Maher
President and Chief Executive Officer
FOR FURTHER INFORMATION, PLEASE CONTACT:
Peruvian Precious Metals Corp.
Kimberly Ann Arntson, CFO, Vice President – Corporate Development
Phone: +1.530.414.4400
Email: kimberly.ann@peruvianpmc.com
Website: www.peruvianpmc.com
Cautionary Statement:
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the Igor Mine Project and other future plans, objectives or expectations of Peruvian Precious Metals Inc. (the “Company”) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include risks relating to the actual results of current exploration and development activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. 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.