AbraSilver – Kinross Gold and Central Puerto Make Strategic Investments Of C$20 Million And Form A Regional Partnership For Exploring And Developing Mineral Projects In Argentina
John Miniotis, President and CEO of AbraSilver Resource Corp (TSX.V:ABRA – OTCQX:ABBRF), joins us to outline the key news this week of a strategic C$20 million non-brokered private placement of AbraSilver common shares with major gold producer Kinross Gold Corporation (NYSE: KGC) (TSX: K) and major utility company and affiliate of Central Puerto SA (NYSE: CEPU) at a subscription price of C$0.40 per Common Share. Upon closing of the Private Placement, Kinross and Central Puerto will each own approximately 4.0% of the outstanding Common Shares on an undiluted basis.
As part of this strategic investment, there is also the creation of an Investor Rights Agreement with Kinross, where AbraSilver and Kinross will form a regional partnership to jointly explore for and acquire new projects in Argentina focused on silver, gold, and copper. John pointed out that there is also going to be an exchange of expertise and specialized knowledge where AbraSilver will enter into an Investor Rights Agreement with each of Kinross and Central Puerto that includes, among other things, standard anti-dilution and equity participation rights and the formation of a Technical Advisory Committee and a Strategic & Operational Committee.
Through this transaction, AbraSilver will be well-funded for a dual strategy to aggressively advance its wholly-owned Diablillos project in Salta Province, Argentina project towards a production decision and to accelerate their exploration efforts moving forward. John shares some of the initiatives the Company will pursuing by further exploring the JAC North, Alpaca, Fantasma, and Ladera targets, along with going after larger step out discovery targets north of the Oculto. We also review the improving attitudes to mining in country over the last few years and the benefit of the project being in the mining friendly province of Salta in Argentina.
If you have any follow up questions for John regarding at AbraSilver, then please email us at Fleck@kereport.com or Shad@kereport.com.
- In full disclosure, Shad is a shareholder of AbraSilver at the time of this recording.
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