/NOT FOR DISTRIBUTION TO UNITED
STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES./
TORONTO, May 20, 2016 /CNW/ - Toachi Mining
Inc. ("Toachi" or the "Company") (TSXV-TIM) is
pleased to announce that it has amended the terms of its previously
announced private placement offering (the "Offering") of
units (the "Units") of the Company, announced on
May 17, 2016. Under the amended terms
of the Offering, Toachi and Beacon Securities Limited
("Beacon"), as lead agent and bookrunner, on its own behalf
and on behalf of a syndicate of agents to be formed (the
"Agents"), have agreed that up to 15,000,000 Units will be
offered on a commercially-reasonable best efforts agency basis
pursuant to private placement exemptions from prospectus
requirements of applicable securities laws at a price of
$0.20 per Unit for gross proceeds to
the Company of up to $3,000,000.
Each Unit will be comprised of one common share (a "Common
Share") of the Company and one-half of one common share
purchase warrant (each full common share purchase warrant being, a
"Warrant"). Each Warrant shall entitle the holder thereof to
acquire one Common Share at a price per Common Share of
$0.30 for a period of 24 months
following the closing date.
The Agents have also been granted an option (the "Agents'
Option") to increase the size of the Offering by up to an
additional 2,500,000 Units, exercisable in whole or in part by
Beacon on behalf of the Agents at any time up to 48 hours prior to
the closing date. In the event the Agents' Option is exercised in
full, the aggregate gross proceeds to the Company will be up to
$3,500,000.
The net proceeds from the Offering are intended to be used to
advance the Company's La Plata gold-copper-silver-zinc volcanogenic
massive sulphide property in Ecuador and for working capital and general
corporate purposes. For additional information on the La Plata
project, please visit Toachi's website at www.toachimining.com or
www.sedar.com.
Closing of the Offering is expected to occur on or about the
week of June 6, 2016 and is subject
to receipt of all necessary regulatory approvals, including
approval of the TSX Venture Exchange. All securities issued in
connection with the Offering will be subject to a four month hold
period plus one day in accordance with applicable Canadian
securities laws, commencing on the closing date of the
Offering.
This news release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, and such securities may not be offered or sold within
the United States absent U.S.
registration or an applicable exemption from U.S. registration
requirements.
About Toachi Mining Inc.
Toachi Mining brings a disciplined and veteran team of project
managers together with a high grade gold-copper-silver-zinc project
at La Plata in Ecuador. Toachi
Mining is focused on and committed to the development of advanced
stage mineral projects throughout the Americas using industry best
practices combined with a strong social license from local
communities. Toachi Mining has 18,849,937 shares issued and
outstanding.
Forward Looking Statements
Certain statements contained in this news release constitute
"forward-looking information" as such term is used in applicable
Canadian securities laws. Forward-looking information is based on
plans, expectations and estimates of management at the date the
information is provided and is subject to certain factors and
assumptions, including, that the Company's financial condition and
development plans do not change as a result of unforeseen events
and that the Company obtains regulatory approval. Forward-looking
information is subject to a variety of risks and uncertainties and
other factors that could cause plans, estimates and actual results
to vary materially from those projected in such forward-looking
information. Factors that could cause the forward-looking
information in this news release to change or to be inaccurate
include, but are not limited to, the risk that any of the
assumptions referred to prove not to be valid or reliable, that
occurrences such as those referred to above are realized and result
in delays, or cessation in planned work, that the Company's
financial condition and development plans change, and delays in
regulatory approval, as well as the other risks and uncertainties
applicable to the Company as set forth in the Company's continuous
disclosure filings filed under the Company's profile at
www.sedar.com. The Company undertakes no obligation to update these
forward-looking statements, other than as required by applicable
law.
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 Toachi Mining Inc.