RE:RE:RE:RE:Why the big rally?I don´t know if the retreat will be much longer. HBM will participate in the PML's next private placement as the press release below clearly indicates. After AZC's takeover I believed that HBM was not interested anymore in PML, apparently I was wrong. The question is: Is this HBM' move for investment's purposes (sell later the shares at a much higher price)? or Does HBM expects to acquire PML in the future?
Vancouver, B.C., June 27, 2014 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro", the "Company") announces that it proposes to complete a non-brokered private placement (the "Private Placement") of 1,508,606 common shares (the "Shares") at a price of $0.42 per share with HudBay Minerals Inc. ("HudBay").
The private placement is being conducted in conjunction with the $5.0 million bought deal financing announced by the Company on June 23, 2014 (the "Bought Deal Offering"). Pursuant to a subscription agreement between the Company and HudBay dated June 30, 2011, HudBay was granted a pre-emptive right to purchase up to that number of Shares as will enable it, upon completion of the Bought Deal Offering, to maintain the same percentage interest in the Company after the completion of the Bought Deal Offering. HudBay currently holds 22,907,500 common shares of the Company representing approximately 11.2% of the issued common shares of the Company.
Furthermore, in the event the underwriters of the Bought Deal Offering exercise the full amount of their over-allotment option pursuant to the Bought Deal Offering, HudBay has agreed to exercise its pre-emptive right to purchase an additional 226,291 Shares on the same terms as the Private Placement.
The Company intends to use the net proceeds from the Offering to fund the continued exploration and development of the Company's Cotabambas Project, as well as for working capital and general corporate purposes.
The Shares acquired by HudBay will be subject to a hold period of four months plus one day from the date of closing of the Private Placement in accordance with applicable securities legislation.
The Private Placement is subject to the approval of the TSX Venture Exchange. It is anticipated that the Private Placement will be completed concurrently with or immediately following the completion of the Bought Deal Offering.