ATLY:CC - Altaley Mining Announces First Tranche Closing of $4.24 Million and Updates Tahuehueto Construction
(NewsDirect)
Altaley MiningCorporation (“ Altaley ” or the “ Company ” (TSX-V:ATLY; OTCQX: ATLYF; Frankfurt: TSGA) announces that it has closed afirst tranche of its non-brokered private placement financing (the“ Private Placement ”) for gross proceeds of $4,240,703.60 onthe issuance of 12,116,296 Units at $0.35 per Unit. Each Unitconsists of one common share of the Company (a “ UnitShare ”) and one half of one transferable share purchase warrant(each whole warrant a “ Warrant ”). Each Warrant entitles theholder thereof to acquire one additional common share (a “ WarrantShare ”) at a price of CAD $0.55 per Warrant Share for a periodending two (2) years (the “ Expiry Date ”) following theclosing of the Private Placement (the “ Closing Date ”)subject to an acceleration clause. If, at any time between ClosingDate and the Expiry Date, the closing price of the Company’s commonshares (“ Shares ”)on the TSX Venture Exchange (the“ Exchange ”) exceeds $0.75 for 15 consecutive trading days,then the Company will earn the right, by providing notice (the" Acceleration Notice ") to the Warrant holder via newsrelease or written notice, to accelerate the Expiry Date of theWarrants to 4:00pm (Vancouver time) on that date which is 30 days fromthe date of the Acceleration Notice (the “ Accelerated ExpiryDate ”). In such instance, all Warrants that are not exercisedprior to the Accelerated Expiry Date will expire on the AcceleratedExpiry Date.
Allsecurities issued in connection with the private placement are subjectto a four month plus one day hold period under applicable Canadiansecurities laws. Finder’s fees of $68,340 cash were paid inconnection with the Private Placement. The Private Placement issubject to receipt of final approval of the TSX VentureExchange.
TheCompany intends to close the remaining $759,296 second tranche of theunit private placement under the same terms outlined above asremaining private placement subscription agreements and proceeds arereceived by the Company.
The net proceeds from the Units will be used by the Company forworking capital purposes related to the ramp-up of mining and millingoperations at the Tahuehueto Mine and for general working capitalpurposes.
Tahuehueto Construction Update
At Tahuehueto, construction has advanced suchthat the first ball mill has now successfully completed its initialdry testing phase and has been deemed ready to process ore ( Ball Mill Dry Test Video ). Theflotation circuit has been successfully wet tested, and various millcomponents such as thickening tanks, concentrate filters, tailingsthickeners are ready and available to start production.
Final work is in processand expected to be completed within the next week on the waterline tosupply water to the mill after which, the mill is expected to startpre-production ore processing operations using the first ball millwith up to 500 tpd capacity. The second ball mill will be installed inthe coming months to allow the mine to ramp up to its build capacityof 1,000 tpd during Q3, 2022.
Underground development is well advanced withnumerous working faces available to easily provide ongoing ore feed tothe mill at 1,000 tpd. To date, previous pre-production mining pluscurrent underground development mining has stockpiled approximately24,000 tonnes of ore which is ready to feed the mill.
Ralph Shearing, CEO, President of Altaleycommented “The start of pre-production mining at Tahuehueto will beone of Altaley’s most important milestones and is the culminationof many years of hard work advancing this project through itsexploration and development phases and as we go into the final stretchof construction to install the second ball mill allowing Altaley andits shareholders to participate in and realize the benefits of asubstantial increase in the Company’s revenue from a robust new goldmine.”
About Altaley Mining Corporation
AltaleyMining Corporation is a Canadian based mining company with two 100%owned Mexican gold, silver, and base metal miningprojects.
Altaley's Tahuehueto mining project is innorth-western Durango State, Mexico where construction has beenadvanced to near completion on its 1,000 tonne per day processingfacility and related mine infrastructure to initiate production ofgold, silver, lead, and zinc in concentrates at Tahuehueto. TheCompany is targeting initial pre-production in April 2022 and rampingup to full production capacity during Q3-Q4 2022.
Campo Moradois an operating polymetallic base metal mine with mining and millingequipment currently producing at an average of 2,200 tonnes per dayand is currently estimated to be Mexico’s 6th largest zincproducer.
Visit: www.altaleymining.com
On Behalf of theBoard of Directors
(signed) “Ralph Shearing”Ralph Shearing,P. Geol,
CEO, President and Director
Cautionary NoteRegarding Production Decisions and Forward-LookingStatements
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
It should be noted that Altaley declaredcommercial production at Campo Morado prior to completing afeasibility study of mineral reserves demonstrating economic andtechnical viability. Accordingly, readers should be cautioned thatAltaley’s production decision has been made without a comprehensivefeasibility study of established reserves such that there is greaterrisk and uncertainty as to future economic results from the CampoMorado mine and a higher technical risk of failure than would be thecase if a feasibility study were completed and relied upon to make aproduction decision. Altaley has completed a preliminary economicassessment (“PEA”) mining study on the Campo Morado mine thatprovides a conceptual life of mine plan and a preliminary economicanalysis based on the previously identified mineral resources (seeNews Release dated November 8, 2017, and April 4, 2018). ).Furthermore, It should be noted that Altaley intends to commencepre-production and ramp up to full commercial production at Tahuehuetoprior to completing a feasibility study of mineral reservesdemonstrating economic and technical viability. Accordingly, readersshould be cautioned that Altaley’s pre-production and productiondecisions will be made without a comprehensive feasibility study ofestablished reserves such that there is greater risk and uncertaintyas to future economic results from the Tahuehueto mine and a highertechnical risk of failure than would be the case if a feasibilitystudy were completed and relied upon to make such productiondecisions. Altaley has completed a positive pre-feasibility study (the“Pre-Feasibility Study”) and updated mineral reserves/resourcesestimates at its flagship Tahuehueto Mine that provides a conceptuallife of mine plan and a preliminary economic analysis based on a 1,000tonne per day operation (see News Release dated March 7, 2022)
Statements contained in this news release that are nothistorical facts are "forward-looking information" or"forward-looking statements" (collectively,"Forward-Looking Information") within the meaning ofapplicable Canadian securities laws. Forward-Looking Informationincludes but is not limited to conditions or financial performancethat are based on assumptions about future economic conditions andcourses of action; the timing and costs of future activities on theCompany's properties, such as production rates and increases;success of exploration, development and bulk sample processingactivities, and timing for processing at its own mineral processingfacility on the Tahuehueto project site. In certain cases,Forward-Looking Information can be identified using words and phrasessuch as "plans," "expects," "scheduled,""estimates," "forecasts," "intends,""anticipates" or variations of such words and phrases. Inpreparing the Forward-Looking Information in this news release, theCompany has applied several material assumptions, including, but notlimited to, that the current exploration, development, environmentaland other objectives concerning the Campo Morado Mine and theTahuehueto Project can be achieved; that commencement ofpre-production mining and milling operations at Tahuehueto willproceed as planned; the continuity of the price of gold and othermetals, economic and political conditions, and operations.Forward-Looking Information involves known and unknown risks,uncertainties and other factors which may cause the actual results,performance, or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed orimplied by the Forward-Looking Information. There can be no assurancethat Forward-Looking Information will prove to be accurate, as actualresults and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not placeundue reliance on Forward-Looking Information. Except as required bylaw, the Company does not assume any obligation to release publiclyany revisions to Forward-Looking Information contained in this newsrelease to reflect events or circumstances after the date hereof or toreflect the occurrence of unanticipated events.
ContactDetails
Altaley Mining Corporation
GlenSandwell
+1 604-684-8071
CompanyWebsite
https://www.altaleymining.com/
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