Antares Announces Early Exercise of Warrants by IFC
WATERDOWN, ONTARIO, Mar 29, 2010 (Marketwire via COMTEX News Network) --NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Antares Minerals Inc. ("Antares" or the "Company") (TSX VENTURE:ANM) is pleased to announce that IFC, a member of the World Bank Group, has agreed to exercise all 3,750,000 warrants that it holds to acquire 3,750,000 common shares of the Company for a total subscription cost of $7,500,000. These warrants were acquired by IFC in July of 2009 in connection with a private placement. Each warrant entitles IFC to acquire a common share at an exercise price of $2.00 until July 22, 2014. If at any time following July 22, 2011, the Company's common shares trade at $2.75 or higher for 30 days on a volume weighted-average basis, the Company can give notice accelerating the expiry date of the warrants to 60 days following the date of such notice.
As consideration for IFC agreeing to this early exercise of its warrants, Antares has agreed to issue 1,875,000 new common share purchase warrants to IFC. Each new warrant will entitle IFC to acquire a common share at an exercise price of $3.00 until July 22, 2014. In addition, the Company will grant IFC a contractual right to participate in any future Antares financings to maintain its pro-rata equity interest in the Company.
Closing of this transaction is subject to approval of the TSX Venture Exchange and the negotiation and execution of definitive agreements. The new warrants to be issued pursuant to this financing will be subject to a four month hold period in accordance with Canadian securities law.
John Black, President and CEO of Antares Minerals Inc. commented as follows:
"We appreciate the support that IFC is providing as a significant shareholder in the Company. The funds received from this warrant exercise will enable the Company to aggressively proceed with pre-feasibility and exploration drill programs at Haquira while maintaining a solid balance sheet with minimal share dilution. We expect these programs to start with four rigs in April, pending receipt of updated environmental permits.
In addition to ongoing drill programs in 2010, we are also looking forward to the receipt of a preliminary economic analysis (PEA), or scoping study, of the Haquira project. This PEA will incorporate both the secondary SX-EW and primary sulphide zones that have been established to date at Haquira. We believe that this fully integrated study of the proposed SX-EW/mill-concentrator operation will reveal more fully the potential value of the Haquira project. We expect to receive this report in the next quarter."
Monday, March 29, 2010
More IFC money flows into mining
What the below means is that Antares Minerals (ANM.v) can get on and drill its 2010 campaign without having to go to market. The fully diluted shares number stays where it is, and $7.5m goes to the cash line. This is a real endorsement of the Haquira project from bigboy financiers that didn't need to exercise these warrants right now but decided to do so in order to add financial backbone to ANM. We very like this news.