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 Private
Placement.
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.
About Panoro
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:
Cotabambas: |
|
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). |
|
|
|
Antilla: |
|
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 in production.
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.