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Private equity financing $8.625 million
Vancouver, British Columbia, May 28, 2021 / CNW /- MANTARO SILVER CORP. (Formerly Yuntone Capital Corp.) (Toronto Stock Exchange:MSLV) (This”the company“) is pleased to announce that it has completed the previously announced “qualified transaction” (“transaction“), therefore our company is now the issuer of Tier 2 Mining under the TSX Venture Exchange policy (“exchange“). Mantaro owns five Peruvian minerals focused on silver, including its flagship Santas Gloria Silver Property and San Jose, La Purisima, Ceroluk And Huaranay Properties (“Silver attributes“).
Trade the company’s common stock under the new stock codeMSLV“Expected to be June 1, 2021.
Chris Wilson, The company’s CEO commented: “In the past 12 months, we have built a strong silver-focused asset portfolio, led by our flagship premium silver Santas Gloria Property. With the end 8 million USD With cash on hand, we plan to carry out a strong exploration and drilling plan for the many high-grade silver veins located at the Santas Gloria property.“
Silver Real Estate
Santas Gloria Silver Property
Santas Gloria Silver Property is 100% owned by the company. It consists of three mineral concessions with a total area of 1,100 hectares and is located 55 kilometers to the east. Lima.
Silver is Santas Gloria’s main target product. The historical surface sampling report stated that the silver grade from the bonanza buds exceeded 400 ounces/ton. In the high-grade silver area, the total content of lead and zinc is between 2% and 20%. The information comes from the report of the Dr. Santas Gloria mining project. Alberto Rios Carranza placeholder image (2020).
The middle sulfide veins of more than 10 kilometers are arranged into three key target areas: Tembladera, Elaine and Santa CruzThe system has never been drilled and tested, and silver mining is limited to the two areas of the San Jorge and Tembladera veins.
Santas Gloria has been producing silver since the colonial era. To date, an estimated 4 km underground project has mined 2 of the 22 veins in Santas Gloria. In 2005 and 2006, the San Jorge and Tembladera veins worked on six levels. Santas Gloria is allowed to extract 30 tons per day. A small processing plant on site produces silver concentrate, and the silver recovery rate is reported to be 85%-90%. The information comes from the report of the Dr. Santas Gloria mining project. Alberto Rios Carranza placeholder image (2020).
Santas Gloria is a silver-based metal vein system, also known as Cordilleran silver-based metal type. These deposits have many similarities with the intermediate sulfide vein system. Because these deposits usually have high-grade properties and a large vertical range of precious and base metal reserves, these deposits are attractive exploration targets.
The company intends to drill the first 5,000 meters of diamond drilling from underground and surface locations. Some repairs to the historic underground works are needed, mainly to replace the decaying wood. Drifting on the vein and drilling from the new cross section should be able to most accurately locate the high-grade silver mineralization on the veins of St. George and Tembladera. Other veins will be drilled from the surface, focusing on the gold-rich silver-based metal veins in the north of the concession.
San Jose Silver, La Purisima, Ceroluk Hehualanai Property
San Jose Silver Property is 100% owned by the company and consists of five concessions with a total area of 3,300 hectares, located 180 kilometers north of the northeast. Lima.
The La Purisima property occupies an area of 1,075 hectares and has reported historical levels of up to 8 ounces per ton of silver and 2.5 grams per ton of gold.
Cerro Luque Property covers an area of 1,650 hectares, includes multiple historic tunnels in its reconstruction system, and reports a historical analysis of 11 ounces of silver per ton.
The Huaranay asset covers an area of 2,000 hectares and includes two gold mining areas (Corrales and Chinchango). It also has a long-established silver mine, which is reported to have a grade of 37 ounces per ton of silver.
Eligible transaction
According to the terms of the merger agreement (“Merger agreement“) In the company, Mantaro Silver Corp. (“Mantaro“) and a subsidiary of the company, the company acquired all issued and outstanding securities of Mantaro from the holders of Mantaro’s securities. Each holder of Mantaro’s common stock received one (1) share of the merger After the company’s common stock (“Final issuer’s share“) on behalf of each Mantaro common stock held. All of Mantaro’s current convertible securities, especially Mantaro warrants, are based on a 1:1 ratio and the same economic terms and conditions as the previously issued economic terms and conditions. Conditional exchange or replacement with the final issuer’s warrants.
A total of 26,311,145 issued issuer shares were issued to Mantaro shareholders. After the transaction is completed, Mantaro’s securities holders become the company’s securities holders.
Following the completion of this transaction, the company exchanged two common shares before the merger for one common share after the merger (“merge“After the completion of this transaction, the company changed its name to Mantaro Silver Corp. (“Name change“). As part of the merger and name change, the CUSIP of the resulting issuer’s shares was changed to 564501104.
Non-brokered private placement
Mantaro previously completed a non-brokered private placement, with a total of 23,576,652 subscription receipts (each “Subscription receipt“) has a total revenue of $0.35 per subscription receipt USD 8,251,828.50 (This”Synchronous private placement“).
After the transaction is completed, each subscription receipt is automatically converted into one common share of Mantaro (“Target share“) and one-half of Mantaro’s share purchase warrant (“Underlying warrants“). According to the merger agreement, the underlying shares and underlying warrants are exchanged for the company’s final issuer’s shares and common stock to purchase warrants (“Result issuer Warrants“). Each resulting issuer’s warrants can be exercised at a price of 0.55 USD until May 21, 2022.
According to concurrent private placement, Mantaro paid a cash commission USD 298,810 A total of 943,407 non-transferable common stock purchase warrants (each “Brokerage warrant“). Each brokerage warrant will be exercisable as one share of the issued issuer at a price of 0.55 USD Within the period of an issue date.
Mantaro also completed 1,072,142 units of non-brokered private equity financing (each “unit“) for $ 0.35 Total revenue per unit 375,250.25 USD (This”Unit financing“). Each unit consists of one Mantaro common stock and one-half of the purchase warrants, each warrant entitles the holder to purchase Mantaro common stock at a price of US$100,000 0.55 USD Twelve months from the date of transaction per share. As a result of the completion of the merger agreement, the shares and warrants issued under the simultaneous financing and unit financing are exchanged for the final issuer’s shares and the final issuer’s warrants.
The proceeds from the simultaneous private placement and unit financing will be used for the exploration company’s flagship Santas Gloria Silver Property and working capital in the next twelve months.
Circulating equity and custody requirements
As a result of the transaction, there are a total of 58,441,332 issued issuer shares, of which 6,333,572 issued issuer shares and 54,285 issued issuer warrants will be subject to the level 2 value escrow agreement.
In addition, most of the issuer’s shares issued to former shareholders of Mantaro are subject to the following resale restrictions:
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(One kind) |
The 7,200,000 final issuer shares issued in exchange for Mantaro common stock purchased for $0.05 will be subject to the holding period and will be released as follows: May 21, 2021: 20%, August 21, 2021 An additional 20% for November, an additional 20% on February 21, 2021, an additional 20% on February 21, 2022, and a final increase of 20% on May 21, 2022; and |
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(two) |
The 11,734,000 final issuer’s shares issued in exchange for Mantaro common stock purchased for US$0.125 will be subject to the holding period and will be released as follows: May 21, 2021, 10%, and August 21, 2021. 30%, 30% in November, February 21, 2021, and the remaining 30% on February 21, 2022. |
Directors and senior staff of the company
After this transaction, the company’s leadership team:
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• |
Dr. Christopher Wilson |
—— |
Chief Executive Officer, Chairman, Chief Geologist and Director |
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• |
Kevin Lee |
—— |
Chief Financial Officer and Company Secretary |
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• |
Charles Hersey |
—— |
director |
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• |
Darren Hadswood |
—— |
director |
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• |
Patrick Hickey |
—— |
director |
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• |
Focus Communications (Leo Carabelas) |
—— |
Investor Relations |
Stock option grant
The company has granted a total of 5,440,000 stock options to its directors, officers, employees and consultants.The term of stock options is five years and can be $ 0.35 Each share will vest immediately (except for options issued for investor relations activities).
Additional Information
For more information about the company and transactions, please visit SEDAR at www.sedar.com Under the company profile. The above transaction summary defines the description of the transaction by referring to the company’s documents published on SEDAR.
Qualified personnel
Dr. Christopher Wilson, Ph.D., FAusIMM (CP), FSEG are qualified personnel under National Instrument 43-101 and have reviewed and approved the technical information contained in this press release.
About Mantaro Silver Corp.
Mantaro Silver Corp. is a British Columbia A company that holds 100% equity in its flagship Santas Gloria Silver Property and 100% equity in San Jose and La Purisima, Ceroluk And Hualanai Real Estate.
Forward-looking statements
The information in this press release contains forward-looking statements based on assumptions as of the date of this press release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They cannot guarantee future performance. The company cautions that all forward-looking statements are inherently uncertain, and actual performance may be affected by many significant factors, many of which are beyond the company’s control. These factors include the risks and uncertainties associated with the company’s limited operating history and the need to comply with environmental and government regulations. Therefore, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in forward-looking information. Except for applicable securities legislative requirements, the ultimate issuer does not undertake the obligation to publicly update or modify forward-looking information.
The forward-looking statements contained in this press release were made on the date of this press release. Except as required by law, the company assumes no obligation to update or revise any forward-looking statements, whether due to new information, future events or other reasons.
Neither TSX Venture Exchange nor its regulatory service provider (as the term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Source: Mantaro Silver Corp.
View original content: http://www.newswire.ca/en/releases/archive/May2021/28/c8262.html
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