Aldebaran Resources Inc. ("Aldebaran" or the
"Company", ALDE TSX.V) announces that it intends
to complete a non-brokered private placement offering (the
“Offering”) for aggregate proceeds of up to $5,000,000 through the
issuance of 11,111,111 units of the Company (the “Units”) at a
price of $0.45 per Unit. Each Unit will consist of one common share
(“Common Share”) in the capital of the Company and one-half of one
warrant (each whole warrant, a “Warrant”). Each Warrant will
entitle the holder to purchase one additional Common Share at a
price of $0.70 until the second anniversary of the closing date of
the Offering (the “Expiry Date”).
The Company’s two largest shareholders, Route
One Investment Company LLC (“ROIC”) and Sibanye Stillwater Limited.
(“Sibanye-Stillwater”), have each indicated that they intend to
exercise their rights under their respective Investment Agreements
with the Company to subscribe for their pro-rata share of the
Offering, with Sibanye-Stillwater’s subscription being subject to
internal approval procedures. Route One currently owns
approximately 47.58% of the outstanding shares of the Company and
Sibanye owns approximately 19.90%.
Management of the Company has indicated that
they intend to participate in the Offering as well.
The proceeds of the Offering will be used
towards the ongoing drill program at the Company’s Altar
copper-gold project in Argentina, and for general corporate
purposes. The Company is currently executing a drill program at
Altar, targeting deeper extensions of known higher-grade
mineralization. Two holes have been recently completed, with
an additional two ongoing. The Company intends to continue to
drill until the end of the field season, which is typically in
May.
The Offering is scheduled to close on or about
April 29, 2021, and is subject to certain conditions including, but
not limited to, the receipt of all necessary approvals of the TSX
Venture Exchange. The Units to be issued under this Offering will
be offered by way of private placement exemptions in various
provinces of Canada as well as outside of Canada, pursuant to
applicable exemptions and in the United States on a private
placement basis pursuant to exemptions from the registration
requirements of the United States Securities Act of 1933, as
amended. The Company may pay a finder’s fee of up to 6% cash and 6%
compensation warrants to qualified finders in respect of portions
of the Offering.
As noted above, certain insiders of Aldebaran
will acquire securities in the Offering. Any such
participation would be considered a “related party transaction” as
defined under Multilateral Instrument 61-101. The Company expects
to rely on certain exemptions in 61-101 based on the size of the
Offering in connection therewith.
The securities referred to in this news release
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
within the United States or to, or for the account or benefit of,
U.S. persons absent U.S. registration or an applicable exemption
from the U.S. registration requirements. This release does not
constitute an offer for sale of, nor a solicitation for offers to
buy, any securities in the United States. Any public offering
of securities in the United States must be made by means of a
prospectus containing detailed information about the issuer and its
management, as well as financial statements.
For further information, please consult
our website at www.aldebaranresources.com
or contact:
Laura BrangwinInvestor Relations ManagerPhone:
+1 646 583-1404 Email: laura.brangwin@aldebaranresources.com
About Aldebaran Resources
Inc.
Aldebaran is a mineral exploration company that
was spun out of Regulus Resources Inc. in 2018 and has the same
core management team. Aldebaran acquired the Rio Grande copper-gold
project located in Salta Province, Argentina from Regulus along
with several other early-stage projects in Argentina. Aldebaran
also has the right to earn up to an 80% interest in the Altar
copper-gold project in San Juan Province, Argentina from Sibanye
Stillwater. The Altar project hosts multiple porphyry copper-gold
deposits with potential for additional discoveries. Altar forms
part of a cluster of world-class porphyry copper deposits which
includes Los Pelambres (Antofagasta Minerals), El Pachon
(Glencore), and Los Azules (McEwen Mining). A total of 259 drill
holes (119,052 m) have been completed at Altar between 1995 and
2019. In March 2021 the Company announced an updated mineral
resource estimate for Altar, prepared by Independent Mining
Consultants Inc. and based on the drilling completed up to and
including 2020. The Company is in the process of finalizing the NI
43-101 Technical Report and will file it on SEDAR once completed.
Aldebaran’s primary focus is the Altar project with a view to
discovering new zones with higher-grade mineralization.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements regarding Aldebaran,
including management's assessment of future plans and operations,
may constitute forward-looking statements under applicable
securities laws and necessarily involve known and unknown risks and
uncertainties, most of which are beyond Aldebaran's control. Often,
but not always, forward-looking statements or information can be
identified by the use of words such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate" or
"believes" 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.
Specifically, and without limitation, all
statements included in this press release that address activities,
events or developments that Aldebaran expects or anticipates will
or may occur in the future, including the proposed exploration and
development of the Altar project described herein, the use of
proceeds of the Offering, availability of exemptions from MI
61-101, management's assessment of future plans and operations and
statements with respect to the completion of the Offering,
completion of a new resources estimate and anticipated exploration
and development programs, , may constitute forward-looking
statements under applicable securities laws and necessarily involve
known and unknown risks and uncertainties, most of which are beyond
Aldebaran's control. These risks may cause actual financial and
operating results, performance, levels of activity and achievements
to differ materially from those expressed in, or implied by, such
forward-looking statements. Although Aldebaran believes that the
expectations represented in such forward-looking statements are
reasonable, there can be no assurance that such expectations will
prove to be correct. The forward looking statements contained in
this press release are made as of the date hereof and Aldebaran
does not undertake any obligation to publicly update or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities law.
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