TSX.V: AMO
VANCOUVER, May 20, 2014 /CNW/ - Altan Rio Minerals Limited (the
"Company" or "Altan Rio") announces that it has closed its previously
announced private placement (the "Private Placement") with European
Bank for Reconstruction and Development ("EBRD"). Pursuant to the
Private Placement, the Company has issued to EBRD 16,666,000 common
shares at $0.06 per share, for gross proceeds of $999,960. Following
closing of the Private Placement EBRD holds 16,666,000 common shares of
the Company, representing approximately 18.7% of the issued and
outstanding common shares of the Company.
EBRD has 61 shareholders (59 Governments and 2 International
Institutions) and invests in 29 countries from central Europe to
central Asia. EBRD is the largest institutional investor in Mongolia.
Mongolia became an EBRD country of operations in October 2006 and since
the beginning of its operations in Mongolia, the EBRD has committed
through debt and equity investments more than US$ 684 million to the
Mongolian private sector through 52 projects in sectors ranging from
banking to manufacturing and from mining to agribusiness.
Mr Evan Jones, President & CEO of Altan Rio commented:
"We are delighted to have attracted a partner of the calibre of EBRD."
"As shareholders will be aware, the ability for junior explorers such as
Altan Rio to raise capital to fund ongoing activities is somewhat
limited in the current market environment. As such, by entering into
this agreement, Altan Rio has substantially reduced financing
uncertainty."
The Private Placement is the first tranche of a potential investment in
the Company by EBRD of a minimum of $5,000,000 and a maximum of
$10,000,000 under a subscription agreement and framework agreement
between the parties (the "Financing Agreements"). Subsequent tranches
under the Financing Agreements remain subject to a number of conditions
precedent. For additional information regarding the Private Placement
and the Financing Agreements see the Company's press releases dated
January 8 and February 20, 2014.
The common shares issued under the Private Placement are subject to a
four month hold period under applicable securities laws and exchange
policies, expiring September 17, 2014.
About Altan Rio
Altan Rio, founded in 2007, is based in Vancouver BC, Canada. Using
innovative exploration targeting techniques and leveraging long-term
in-country experience, the company explores large-scale gold and copper
projects in Mongolia, one of the world's most prospective mineral
regions. The Company's license holdings in Mongolia, which total more
than 103,341 hectares (255,361 acres), contain significant zones of
newly identified primary gold and copper mineralization across a very
large area of unexplored ground.
On behalf of Altan Rio Minerals Limited,
"Evan Jones"
Evan Jones, President & CEO
This press release may contain forward looking statements including
those describing Altan Rio's future plans and the expectations of
management that a stated result or condition will occur. Any statement
addressing future events or conditions necessarily involves inherent
risk and uncertainty. Actual results can differ materially from those
anticipated by management at the time of writing due to many factors,
the majority of which are beyond the control of Altan Rio and its
management.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Altan Rio Minerals Limited
