ANDINA Minerals Inc.
TSX VENTURE : ADM

ANDINA Minerals Inc.

December 02, 2009 08:46 ET

Andina Closes CDN$25 Million Financing

TORONTO, ONTARIO--(Marketwire - Dec. 2, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

ANDINA Minerals Inc. (TSX VENTURE:ADM) ("Andina" or the "Company") today announced that it has completed the previously announced financing on a bought deal basis, with a syndicate of underwriters co-led by BMO Capital Markets and Haywood Securities Inc. and including Canaccord Capital Corporation and RBC Dominion Securities Inc. Under the amended terms of the financing announced on November 23, 2009, Andina issued a total of 12,500,000 units (the "Units"), each Unit consisting of one common share and one common share purchase warrant, at a price of CDN$2.00 per Unit for gross proceeds of CDN$25,000,0000. Each common share purchase warrant entitles the holder to purchase one common share of the Company at a price of CDN$2.25 until June 2, 2012. The warrants are expected to commence trading on the TSX Venture Exchange at the market open on December 4, 2009, under the symbol ADM.WT.

With receipt of the net proceeds of the financing and as of the date of this press release, Andina's cash position is approximately CDN$44.2 million. The net proceeds from the financing will primarily be used to fund development of the Volcan Gold Project ("Volcan"), including development drilling and engineering following completion of the Company's Conceptual Development Study for Volcan. In addition, a portion of the proceeds will be used for strategic regional exploration, which could serve to further enhance initial Volcan development. The strategic exploration is focused on several targets that show potential for higher grade ore in proximity to the proposed initial development site. The remaining funds will be used for general corporate, working capital and administrative purposes.

"We are now in a better position to progress Volcan development, with funding in hand for more advanced engineering studies that could take us to the feasibility stage on initial development," said George Bee, President & CEO. "The next phase of engineering will be contingent on the approval of our Board of Directors following presentation of Volcan's Conceptual Development Study and Preliminary Economic Assessment, planned for release in early 2010." He added, "This funding also gives us greater flexibility to expand strategic regional exploration in the current field season, if warranted by positive results."

About Andina Minerals Inc.

Andina's primary focus is mining exploration and development in Chile. The Company's flagship development project is the 100%-owned Volcan Gold Project, strategically located in the prolific Maricunga Gold Belt. In September 2009, Andina provided an updated resource estimate for Volcan including measured and indicated mineral resources of 492.5 million tonnes at an average grade of 0.62 g/t Au for 9.8 million ounces of contained gold and inferred mineral resources of 36.8 million tonnes at an average grade of 0.65 g/t Au for 768,000 ounces of gold. Andina is progressing with a Conceptual Development Study and a Preliminary Economic Assessment for Volcan, targeted for completion in early 2010.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Forward Looking Statements

This release contains forward-looking statements, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements with respect to exploration results, the timing and success of exploration activities generally, permitting timelines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcomes of any pending litigation and timing and results of future resource estimates or future economic studies and in particular include statements with respect to the commencement and completion of the Conceptual Development Study and Preliminary Economic Assessment for the Volcan Project. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects" or "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipate", "does not anticipate", or "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

Forward-looking statements are based on a number of material factors and assumptions, including the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted.

Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although Andina has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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.

Contact Information

  • Andina Minerals Inc.
    George M. Bee
    President & CEO
    416 203 3488
    or
    Andina Minerals Inc.
    Marla Gale
    Director of Investor Relations
    416 203 3488
    www.andinaminerals.com