TSX-V: AZR
TORONTO, Oct. 7, 2016 /CNW/ - AZARGA METALS
CORP. ("Azarga Metals" or the "Company")
(TSX-V:AZR) announces that on 7
October 2016, it closed a previously announced non-brokered
private placement through the issuance of 3,437,500 units at a
price of $0.32 per unit (the
"Unit") for gross proceeds of $1,100,000. Each Unit consists of one
common share of the Company (each, a "Share") and one-half
of one Share purchase warrant (each whole warrant, a
"Warrant"). One Warrant entitles the holder thereof to
purchase one Share of the Company at a price of $0.40 per Share for a period of 12-months from
the closing of the Private Placement. The Shares issued in
connection with the private placement are subject to a four-month
hold period expiring on 8 February
2017. The Company paid finders' fees of $8,100.
The proceeds of the financing will primarily be used to fund the
expansion to the first phase exploration program at Azarga Metals'
Unkur Silver-Copper Project as announced by the Company on
21 September 2016. Such expansion
includes an increase in drilling from approximately 3,000 linear
meters to approximately 5,000 linear meters together with the
addition of trenching and a ground magnetic survey. Any remaining
proceeds will be used for general corporate purposes.
SHARES FOR SERVICES
As reported in the Company's financial statements, with effect
from June 1, 2016, the Company agreed
to pay Blake Steele a monthly fee of
$2,500 and the three non-executive
directors of the Company fees of $1,500 a month. All fees shall be paid in
arrears on a quarterly basis by the issue of common shares of the
Company to be priced in the context of the market on the last day
of each calendar quarter.
About Azarga Metals Corp.
Azarga Metals is a mineral exploration and development company
that owns 60% of the Unkur Silver-Copper Project in the Zabaikalsky
administrative region in eastern Russia.
AZARGA METALS CORP.
"Dusty Nicol"
Dorian L. (Dusty) Nicol,
President and CEO
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.
Cautionary Statement:
This news release contains forward-looking statements that are
based on the Corporation's current expectations and estimates.
Forward-looking statements are frequently characterized by words
such as "plan", "expect", "project", "intend", "believe",
"anticipate", "estimate", "suggest", "indicate" and other similar
words or statements that certain events or conditions "may" or
"will" occur. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors that could cause
actual events or results to differ materially from estimated or
anticipated events or results implied or expressed in such
forward-looking statements. Such factors include, among others: the
actual results of current planned exploration activities;
conclusions of economic evaluations; changes in project parameters
as plans to continue to be refined; possible variations in ore
grade or recovery rates; accidents, labour disputes and other risks
of the mining industry; delays in obtaining governmental approvals
or financing; and fluctuations in metal prices. There may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. Any forward-looking statement
speaks only as of the date on which it is made and, except as may
be required by applicable securities laws, the Corporation
disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or
results or otherwise. Forward-looking statements are not guarantees
of future performance and accordingly undue reliance should not be
put on such statements due to the inherent uncertainty therein.
SOURCE Azarga Metals Corp.