The capital raising will include:
On May 17, 2019 Metminco revealed it had entered an agreement with Andes to merge the two companies and create a leading Colombian gold explorer and developer, with a dominant position in the richly gold-copper endowed Mid-Cauca Gold Belt.
A key condition of the merger is that Metminco and Andes collectively raise a total of $4 million in new equity.
Through the combination of this capital raising and the convertible note placement announced on March 15 2019, Metminco has now received firm commitments to raise $3.25 million, subject to completion of the merger and the receipt of the remaining outstanding convertible note amendment deeds.
The balance $750,000 is being raised by Andes through a private placement.
Location of Andes’ and Metminco’s exploration ground
Metminco executive chairman Kevin Wilson said: “The support we have received from Sandfire and the underwriting from Hartleys further secures the proposed Merger with Andes.
“With the commitments received, we are now one significant step closer to completing the proposed Merger and accelerating toward drilling our prized Chuscal Project.
“It is pleasing that despite the currently challenging conditions for raising risk capital for junior resource companies, we have been able to secure commitments to raise $3.25 million at our current market price.
“This demonstrates the strong interest the market has in funding the exploration activities of Metminco given the potential for very significant leverage in the case of drilling success, which we intend to test shortly.”