VANCOUVER, June 27, 2014 /CNW Telbec/ - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro", the "Company")
announces that it proposes to complete a non-brokered private placement
(the "Private Placement") of 1,508,606 common shares (the "Shares") at
a price of $0.42 per share with HudBay Minerals Inc. ("HudBay").
The private placement is being conducted in conjunction with the $5.0
million bought deal financing announced by the Company on June 23, 2014
(the "Bought Deal Offering"). Pursuant to a subscription agreement
between the Company and HudBay dated June 30, 2011, HudBay was granted
a pre-emptive right to purchase up to that number of Shares as will
enable it, upon completion of the Bought Deal Offering, to maintain the
same percentage interest in the Company after the completion of the
Bought Deal Offering. HudBay currently holds 22,907,500 common shares
of the Company representing approximately 11.2% of the issued common
shares of the Company.
Furthermore, in the event the underwriters of the Bought Deal Offering
exercise the full amount of their over-allotment option pursuant to the
Bought Deal Offering, HudBay has agreed to exercise its pre-emptive
right to purchase an additional 226,291 Shares on the same terms as the
The Company intends to use the net proceeds from the Offering to fund
the continued exploration and development of the Company's Cotabambas
Project, as well as for working capital and general corporate purposes.
The Shares acquired by HudBay will be subject to a hold period of four
months plus one day from the date of closing of the Private Placement
in accordance with applicable securities legislation.
The Private Placement is subject to the approval of the TSX Venture
Exchange. It is anticipated that the Private Placement will be
completed concurrently with or immediately following the completion of
the Bought Deal Offering.
Panoro is advancing its significant portfolio of copper and gold
projects in the key Andahuaylas-Yauri belt in south central Peru,
including its advanced stage Cotabambas Copper-Gold-Silver-Molybdenum
and Antilla Copper-Molybdenum Projects.
Since 2007, the company has completed over 70,000 m of exploration
drilling at these two key projects leading to the delineation of
mineral resources in late 2013 of:
Indicated Resource 117.1 Mt @ 0.42% Cu, 0.23g/t Au, 2.74 g/t Ag &
0.001%Mo (@0.2% Cueq cutoff)|
Inferred Resource 605.3 Mt @ 0.31% Cu, 0.17g/t Au, 2.33 g/t Ag and 0.002
%Mo (@0.2% Cueq cutoff)
(Tetra Tech, 2013).
Indicated Resource 188.5 Mt @ 0.40% Cu and 0.009% Mo (@0.2% Cueq cutoff)|
Inferred Resource 145.9 Mt @ 0.28% Cu and 0.009%Mo (@0.2% Cueq cutoff)
(Tetra Tech, 2014).
Panoro continues its exploration at the Cotabambas project while a
Preliminary Economic Assessment (PEA) is underway by AMEC Americas
Ltd. The PEA is due for completion in fall of 2014. The already
significant resource, together with significant geologic potential
demonstrate the potential for a large scale open pit mine at the
project. To date exploration at the Cotabambas Project has focused on
the Ccalla and Azulccaca deposits. However, at least eight other
porphyry and skarn target zones have been identified on the property
and drilling is planned.
A PEA for the Antilla Project is also planned for completion in fall of
2014. The moderate scale of the resource at the Antilla Project
together with strong infrastructure in the area may result in a
moderate capital cost development plan for the project.
In addition to the Cotabambas and Antilla Projects, Panoro's portfolio
includes more than 10 earlier stage projects in the same region of
south central Peru. Peru's national objective of doubling copper
production together with the development of the many copper projects in
the region, together with the private and public investments into rail,
road, power generation and transmission and port infrastructure are
leading to the rapid growth of an important global center for copper
production. Panoro's large portfolio is situated here along with the
Las Bambas, Tintaya, Antapaccay, Haquira, Constancia, Los Chancas and
Trapiche projects, all of which are either in construction or already
Luis Vela, a P. Geo Qualified Person under National Instrument 43-101,
has reviewed and approved the scientific and technical information in
this press release.
On behalf of the Board of Panoro Minerals Ltd.
Luquman A. Shaheen, M.B.A., P.Eng., P.E.
President & CEO
This release was prepared by management of the Company who takes full
responsibility for its contents. Neither 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.
SOURCE Panoro Minerals Ltd.