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TSX: JAG
TORONTO, June 26, 2019 /CNW/ - Jaguar Mining Inc.
("Jaguar" or the "Company") (TSX: JAG) is pleased to
provide the following update on the non-brokered private placement
(the "Offering") of common shares in the capital of Jaguar
("Common Shares") that the Company announced on June 18, 2019:
- TSX Conditional Approval: The Toronto Stock
Exchange (the "TSX") has conditionally approved the
Offering, following its review of the Company's application to
utilize the "financial hardship" exemption from the requirements to
obtain shareholder approval for the Offering. The completion of the
Offering remains subject to the TSX's final acceptance.
- Full Order Book: As at the date of this news release,
the Company has a full order book for the USD$25 million Offering and therefore is no
longer accepting new subscriptions for the Offering. This
highlights the robustness of investor interest in the Offering, as
well as both current shareholders' and new investors' support for
the Company's strategic review process to enhance shareholder
value and improve the overall production profile, operating
efficiency and cost structure of its mineral projects.
- Anticipated Closing Date: Based on the foregoing, the
Offering is now expected to close on or about July 3, 2019, or such later date(s) as may be
determined by the Company.
As previously announced on June 18,
2019, the Common Shares will be offered at a price per share
of CAD$0.085 (or USD$0.0634 at a deemed exchange rate of
US$1.00 = C$1.34). A finder's fee or commission will be
paid to any finder or independent intermediary that: (i) identifies
and solicits qualified investors that subscribe for the Offering;
and (ii) is a registered dealer or advisor in accordance with
applicable securities laws. For clarity, there will be no
commission, referral or finder's fee payable in respect of
subscribers that are identified and solicited by the Company or any
of its affiliated entities. There will also be no commission,
referral or finder's fee payable to a subscriber (or an affiliate
thereof) in regard to the subscriber's own purchase of any Common
Shares.
The Company currently anticipates that it will use the net
proceeds of the Offering for: (i) capital improvements and
infrastructure intended to improve production output and cost
efficiencies at its operating gold mines in Brazil; (ii) advancing the Company's mineral
exploration activities in order to increase reserves and expected
mine lives; (iii) the repayment of a USD$7.85 bridge loan due July 15, 2019; and (iv) for general corporate and
working capital improvement purposes.
The TSX has informed the Company that the Company will be the
subject of a remedial delisting review. It is routine for the TSX
to require any issuer utilizing the financial hardship exemption to
be the subject of a remedial delisting review. Pursuant to this
delisting review, the TSX has required that, prior to October 16, 2019, the Company demonstrate to the
TSX that the Company complies with all of the TSX requirements for
continued listing after the completion of the Offering
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale
would be unlawful. The securities being offered have not been, nor
will they be, registered under the United
States Securities Act of 1933, as amended, and may
not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the
United States Securities Act of 1933, as amended, and
applicable state securities laws.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mining,
development, and exploration company operating in Brazil with three gold mining complexes and a
large land package with significant upside exploration potential
from mineral claims covering an area of approximately 64,000
hectares. The Company's principal operating assets are located in
the Iron Quadrangle, a prolific greenstone belt in the state of
Minas Gerais and include the Turmalina Gold Mine Complex and Caeté
Mining Complex (Pilar and Roça Grande
Mines, and Caeté Plant). The Company also owns the Paciência
Gold Mine Complex, which has been on care and maintenance since
2012 and the Roça Grande Mine which has been on care and
maintenance since April 2018.
Additional information is available on the Company's website at
www.jaguarmining.com.
Forward-Looking Statements
Certain statements in this news release constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking statements and
information are provided for the purpose of providing information
about management's expectations and plans relating to the future.
All of the forward-looking information made in this news release is
qualified by the cautionary statements below and those made in the
Company's other filings with the securities regulators in
Canada. Forward-looking
information contained in forward-looking statements can be
identified by the use of words such as "are expected," "is
forecast," "is targeted," "approximately," "plans," "anticipates,"
"projects," "anticipates," "continue," "estimate," "believe" or
variations of such words and phrases or statements that certain
actions, events or results "may," "could," "would," "might," or
"will" be taken, occur or be achieved. All statements, other than
statements of historical fact, may be considered to be or include
forward-looking information. This news release contains
forward-looking information regarding, among other things, the
anticipated timing and closing of the Offering and the use of
proceeds therefrom, fundraising, capital markets, expected sales,
production statistics, ore grades, tonnes milled, recovery rates,
cash operating costs, definition/delineation drilling, the timing
and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of
projects and new deposits, success of exploration, development and
mining activities, currency fluctuations, capital requirements,
project studies, mine life extensions, restarting suspended or
disrupted operations, continuous improvement initiatives, capital
improvements, operating efficiencies, and resolution of pending
litigation. The Company has made numerous assumptions with respect
to forward-looking information contained herein, including, among
other things, assumptions about the estimated timeline for: the
raising of sufficient additional capital; the continued development
of its mineral properties; the supply and demand for, and the level
and volatility of the price of, gold; the accuracy of reserve and
resource estimates and the assumptions on which the reserve and
resource estimates are based; the receipt of necessary permits;
market competition; ongoing relations with employees and impacted
communities; political and legal developments in any jurisdiction
in which the Company operates being consistent with its current
expectations including, without limitation, the impact of any
potential power rationing, tailings facility regulation,
exploration and mine operating licenses and permits being obtained
an renewed and/or there being adverse amendments to mining or other
laws in Brazil and any changes to
general business and economic conditions. Forward-looking
information involves a number of known and unknown risks and
uncertainties, including among others: the risk of Jaguar not
meeting the forecast plans regarding its operations and financial
performance; uncertainties with respect to the price of gold,
labour disruptions, mechanical failures, increase in costs,
environmental compliance and change in environmental legislation
and regulation, weather delays and increased costs or production
delays due to natural disasters, power disruptions, procurement and
delivery of parts and supplies to the operations; uncertainties
inherent to capital markets in general (including the sometimes
volatile valuation of securities and an uncertain ability to raise
new capital) and other risks inherent to the gold exploration,
development and production industry, which, if incorrect, may cause
actual results to differ materially from those anticipated by the
Company and described herein. In addition, there are risks and
hazards associated with the business of gold exploration,
development, mining and production, including environmental
hazards, tailings dam failures, industrial accidents and workplace
safety problems, unusual or unexpected geological formations,
pressures, cave-ins, flooding, chemical spills, procurement fraud
and gold bullion thefts and losses (and the risk of inadequate
insurance, or the inability to obtain insurance, to cover these
risks). Accordingly, readers should not place undue reliance on
forward-looking information.
For additional information with respect to these and other
factors and assumptions underlying the forward-looking information
made in this news release, see the Company's most recent Annual
Information Form and Management's Discussion and Analysis, as well
as other public disclosure documents that can be accessed under the
issuer profile of "Jaguar Mining Inc." on SEDAR at www.sedar.com.
The forward-looking information set forth herein reflects the
Company's reasonable expectations as at the date of this news
release and is subject to change after such date. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
law. The forward-looking information contained in this news release
is expressly qualified by this cautionary statement.
SOURCE Jaguar Mining Inc.
