/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TSX-V: CUG and CUG.DB
MONTREAL, April 7,
2016 /CNW/ - Cyprium Mining Corporation (TSX VENTURE:
CUG) ("Cyprium" or the "Corporation"), a
Canadian-based mining company with operations located in the
state of Chihuahua, Mexico, is
pleased to announce that, subject to TSX Venture Exchange Inc.
approval, it has closed the first tranche of its previously
announced private placement of up to 8,000,000 units (the
"Units") at a price of CDN $0.065 per Unit for gross proceeds of up to
CDN$520,000 (the "Offering").
Under this first tranche, Cyprium issued 5,890,000 Units for gross
proceeds of CDN$382,850 (the
"First Tranche"). Each Unit is comprised of one (1) common
share in the capital of the Corporation ("Common Share") and
one (1) share purchase warrant of the Corporation
("Warrant"). Each Warrant will be exercisable into one
Common Share at an exercise price of CDN$0.10 expiring two (2) years from the date of
issuance.
Cyprium has paid finders a cash commission of up
to 8% of the proceeds of the First Tranche that have resulted from
such parties efforts, subject to compliance with applicable
securities laws. The finders have also been granted warrants to
purchase up to 8% of the number of Units sold under the First
Tranche, with each warrant entitling the holder to purchase one
Unit at CDN$0.065 per Unit for a
period of eighteen months from the closing of the First
Tranche.
The net proceeds of the First Tranche and the
Offering will be used by the Corporation to pay for the continued
development of the Corporation's Potosi mining project in Mexico, the costs of the First Tranche and the
Offering, for working capital and general corporate purposes.
Pursuant to applicable securities laws, all
securities issued pursuant to the First Tranche will be subject to
a hold period of four months plus one day following the date of
issuance of such securities. The Company expects a second and final
closing of the private placement by April
15th, 2016.
About Cyprium Mining
Corporation
For further description of Cyprium Mining's
business, please visit our website at:
http://www.cypriummining.com/en/investors/disclaimers
Neither TSX Venture Exchange Inc. nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange Inc.) accepts responsibility for the
adequacy or accuracy of this release.
This news release contains "forward-looking
information" (within the meaning of applicable Canadian securities
laws) and "forward -looking statements" (within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995). Such
statements or information are identified with words such as
"anticipate", "believe", "expect", "plan", "intend", "potential",
"estimate", "propose", "project", "outlook", "foresee" or
similar words suggesting future outcomes or statements regarding an
outlook. Such statements include, among others, those concerning
the Company's anticipated plans for developments of the Company and
its mining projects.
Such forward-looking information or statements
are based on a number of risks, uncertainties and assumptions which
may cause actual results or other expectations to differ materially
from those anticipated and which may prove to be incorrect.
Assumptions have been made regarding, among other things,
management's expectations regarding future growth, plans for and
completion of projects by Company's third party relationships,
availability of capital, and the necessity to incur capital and
other expenditures. Actual results could differ materially due to a
number of factors, including, without limitation, operational risks
in the completion of Company's anticipated projects, delays or
changes in plans with respect to the development of Company's
anticipated projects by Company's third party relationships, risks
affecting the ability to develop projects, risks inherent in
operating in foreign jurisdictions, the ability to attract key
personnel, and the inability to raise additional capital. No
assurances can be given that the efforts by the Company will be
successful. Additional assumptions and risks are set out in detail
in the Company's MD&A, available on SEDAR at www.sedar.com.
Although the Company believes that the
expectations reflected in the forward-looking information or
statements are reasonable, prospective investors in the Company's
securities should not place undue reliance on forward-looking
statements because the Company can provide no assurance that such
expectations will prove to be correct. Forward-looking information
and statements contained in this news release are as of the date of
this news release and the Company assumes no obligation to update
or revise this forward-looking information and statements except as
required by law. Investors should note that, while the mineralized
material being processed by the Company is assayed, there is no
certainty that the proposed operations will be economically or
technically viable. Investors should also note that the
Potosi silver mine and La Chinche
property have no established mineral resources or mineral reserves
as defined by NI 43-101. Although Cyprium Mining has made a
production decision regarding the Potosi silver mine based on historical
production records, historical results of sampling and drilling, a
feasibility study of its projects has not been completed and there
is no certainty that the proposed operations will be economically
or technically viable.
SOURCE Cyprium Mining Corp