Ferrum Americas Announces Closing of $1.1 Million Private Placement
11 December 2013 - 1:10AM
Marketwired
Ferrum Americas Announces Closing of $1.1 Million Private Placement
TORONTO, ONTARIO--(Marketwired - Dec 10, 2013) - Ferrum Americas
Mining Inc., (TSX-VENTURE:FEM) ("Ferrum" or the "Company") is
pleased to announce that it has closed a non-brokered private
placement of units and convertible debentures for gross proceeds of
$1,118,627.
The placement consists of 7,732,837 units at a price of $0.08
per unit for gross proceeds of $618,627. Each unit consists of one
common share in the capital of the Company and one non-transferable
common share purchase warrant. Each warrant entitles the holder to
purchase one common share at a price of $0.20 per share for a
period of three years. The common shares and warrants comprising
the units are subject to a four-month hold period.
Prestige Times Limited Investment
An additional $500,000 was subscribed by Prestige Times Limited
("PT"), a Hong Kong-based investment group, in the form of a
non-interest bearing non-transferable convertible debenture. The
debenture can be converted at the holder's discretion into common
shares of Ferrum at a conversion price of $0.20 per common share at
any time following the first anniversary of the date of issue until
the date that is three years following the date of issue.
PT also subscribed for 6,250,000 units described above. As part
of the placement of units and convertible debentures, PT will also
be appointing one member to the board of directors of Ferrum.
"The investment by PT acknowledges the expertise developed in
Ferrum's team, which will be used to target iron, copper and
precious metals opportunities throughout the Americas," Laurence
Curtis, Chairman of Ferrum said.
The closing remains subject to Ferrum obtaining the final
approval of the TSX Venture Exchange.
About Ferrum Americas Mining
Ferrum Americas is focused on developing iron ore, base and
precious metals projects in the Americas.
Ferrum Americas has rights to acquire a 98% interest in the
Cerro Rojo iron ore project in Bolivia. Located 600 kilometres east
of Santa Cruz and approximately 55 kilometres from Puerto Suarez
and the Hidrovia river system near Corumba, Brazil, Cerro Rojo is a
large banded iron formation striking for more than 4 kilometres,
according to reports prepared by Rio Tinto in 1999 and verified by
Ferrum.
A NI 43-101 mineral resource estimate, prepared by P&E
Mining Consultants Inc., includes Indicated resources of 111.0
million tonnes at 48.1% Fe and Inferred resources of 175.9 million
tonnes grading 48.8% Fe at a 15% iron cut-off grade.
At a cut-off grade of 50% Fe, Indicated resources are 31.2
million tonnes at 51.5% Fe and Inferred resources are 63.0 million
tonnes at 52.0% Fe. The NI-43-101 Technical Report is available at
www.ferrumamericas.com.
Ferrum is also evaluating other iron ore and base and precious
metals opportunities within Bolivia and throughout the
Americas.
Qualified Persons
Mr. Alain Vachon, P.Geo., the Company's Qualified Person as
defined by National Instrument 43-101, has also reviewed and
approved the contents of this press release.
Forward Looking Statements
This news release may contain forward-looking statements
that are based on Ferrum Americas Mining Inc.'s expectations,
estimates and projections regarding its business and the economic
environment in which it operates. These statements are not
guarantees of future performance and involve risks and
uncertainties that are difficult to control or predict. Therefore,
actual outcomes and results may differ materially from those
expressed in these forward-looking statements and readers should
not place undue reliance on such statements. Statements speak only
as of the date on which they are made, and the Company undertakes
no obligation to update them publicly to reflect new information or
the occurrence of future events or circumstances, unless otherwise
required to do so by 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.
Ferrum Americas Mining Inc.Laurence CurtisChairman1 289 242
7422lwcurtis@cogeco.caFerrum Americas Mining Inc.Nick
TintorPresident and CEO1 416 987 0855ntintor@rgmi.caFerrum Americas
Mining Inc.Leslie HaddowCorporate Secretary1
416-637-3523lhaddow@rgmi.ca
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