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VANCOUVER, BC, April 15, 2021 /CNW/ - Josemaria Resources Inc. (TSX: JOSE) (OMX: JOSE) (OTCQB: JOSMF) ("Josemaria Resources" or the "Company") is pleased to report that it has obtained the approval of and registration with the Swedish Financial Supervisory Authority (the "FSA") of a prospectus regarding the admission to trading of additional shares on Nasdaq Stockholm (the "Swedish Prospectus") for an aggregate of 75,383,900 new common shares (the "Common Shares"). The Swedish Prospectus is available on the Company's website at www.josemariaresources.com and can be obtained from the Company upon request. The FSA's approval and registration of the Swedish Prospectus and its subsequent publication on the Company's website satisfies one of the closing conditions for a previously announced private placement (the "Private Placement") and concurrent bought deal financing (the "Offering"). View PDF version.
The SEK denominated Private Placement is expected to result in aggregate gross proceeds of SEK 278.3 million, approximately C$40.5 million, to the Company through the issuance of 58,708,900 Common Shares at a price of SEK 4.74 (corresponding to approximately C$0.69) per share (the "Subscription Price").
A Lundin Family related trust has participated in the equity offering with approximately C$20.5 million.
As previously announced, the Private Placement is being completed concurrently with the Offering pursuant to which a syndicate of underwriters led by BMO Capital Markets (the "Underwriters") have agreed to buy, on a bought deal basis, up to 16,675,000 Common Shares, including 2,175,000 Common Shares issued pursuant to an over-allotment option for aggregate gross proceeds of up to approximately C$11.5 million.
The closing of the Offering and the Private Placement and the listing on the Toronto Stock Exchange ("TSX") of Common Shares issuable under the Offering and the Private Placement is expected to occur on or about April 19, 2021.
The net proceeds of the Offering and Private Placement will be used to continue advancing the Josemaria copper-gold project in San Juan, Argentina (the "Josemaria Project"), repayment of certain outstanding debentures of the Company and general corporate purposes. In respect of the Offering, Common Shares are offered by way of a short form prospectus in all of the provinces and territories of Canada, other than Quebec.
Following the closing of the Private Placement and the Offering, and assuming the exercise, in full, of the over-allotment option granted to the Underwriters pursuant to the Offering, the number of outstanding Common Shares will be 378,367,309. Any Common Shares issued pursuant to the Private Placement will be subject to a statutory hold period in Canada for a period of 4 months and one day. Finders fees of up to 5% may be payable on sales made pursuant to the Private Placement, other than with respect to sales made to the Lundin Family related trust.
This news release is not a prospectus under Regulation (EU) 2017/1129 (the "EU Prospectus Regulation"). The Company has not authorized any offer of securities to the public (as defined in the EU Prospectus Regulation) in any EEA member state and no such prospectus has been or will be prepared in connection with the Public Offering or Private Placement.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
The issuance of Common Shares to the Lundin Family trust, constitute a "related party transaction", as defined under Multilateral Instrument 61- 101 ("MI 61-101") as such entity is an insider of the Company. The transactions are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any Common Shares issued to nor the consideration paid by such persons would exceed 25% of the Company's market capitalization.
ABOUT JOSEMARIA RESOURCES
Josemaria Resources Inc. is a Canadian natural resources company focused on developing its advanced stage, 100% owned Josemaria Project in the San Juan Province of Argentina. A recently published Feasibility Study (see "NI 43-101 Technical Report, Feasibility Study for the Josemaria Copper-Gold Project, San Juan Province, Argentina" dated effective September 28, 2020 and filed on November 5, 2020) demonstrates a simple and conventional open pit copper-gold project with robust economics and a rapid payback period. Josemaria Resources is a Lundin Group company and works in partnership with the Lundin Foundation to execute best practices in responsible mineral development in Argentina where the Lundins have a 30-year track record of value creation. The Company is a reporting issuer in all provinces and territories of Canada and its corporate head office is in Vancouver, BC. The Company's shares are listed on the TSX and on Nasdaq Stockholm under the symbol "JOSE", and trade on the OTCQB under the symbol "JOSMF".
On behalf of Josemaria Resources,
President and CEO
The information was submitted for publication, through the agency of the contact persons set out below on April 15, 2021 at 17:30 Eastern Time.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS:
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, including, without limitation, the potential future development of the Josemaria Project; the anticipated use of proceeds from the Offering and the Private Placement, the anticipated timing of closing of the Offering and the Private Placement, and the anticipated timing for obtaining requisite regulatory (including TSX) approvals; the Company's business goals and objectives are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved.
Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include the Company's ability to finance its planned exploration and development of the Josemaria Project; commodity price fluctuations; uncertainty as to whether there will ever be production at the Company's Josemaria Project; risks related to the Company's ability to commence production and generate revenues; risks related to lack of infrastructure; risks related to delays or failure to receive requisite permits and government approvals; risks related to inclement weather; risks related to dependence on third parties for the development of projects; uncertainties relating to the assumptions underlying resource and reserve estimates; mining and development risks, including risks related to accidents, equipment breakdowns, labor disputes, non-compliance with permit requirements or other unanticipated difficulties with or interruptions in development, construction or production; the geology, grade and continuity of the Company's mineral deposits; the uncertainties involving success of exploration, development and mining activities; permitting timelines; risks pertaining to the outbreak of the global pandemics, including COVID-19; government regulation of mining operations; environmental risks; prices for energy inputs, labour, materials, supplies and services; uncertainties involved in the interpretation of drilling results and geological tests; the need for cooperation of government agencies and indigenous groups; unanticipated variation in geological structures, metal grades or recovery rates; fluctuations in currency exchange rates; unexpected cost increases; uncertainty related to title to the Company's mineral properties; the ability of the Company to satisfy the conditions of the terms and conditions of the debentures issued pursuant to credit facilities; and the timing and success in obtaining requisite regulatory approvals and other risks and uncertainties disclosed in the Company's periodic filings with Canadian securities regulators and in other Company reports and documents filed with applicable securities regulatory authorities from time to time, including the Company's most recent Annual Information Form available under the Company's profile at www.sedar.com. In addition, these statements involve assumptions made with regard to the Company's ability to develop the Josemaria Project and to achieve the results outlined in the Feasibility Study; the ability to raise the capital required to fund construction and development of the Josemaria Project; and the results and impact of future exploration at the Josemaria Project. The Company's forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made. The Company assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.
SOURCE Josemaria Resources Inc.