Xtierra Inc.

Xtierra Inc.

April 06, 2010 16:59 ET

Xtierra Raises $500,000 as Second Tranche of Private Placement

TORONTO, ONTARIO--(Marketwire - April 6, 2010) - Xtierra Inc. (TSX VENTURE:XAG) ("Xtierra" or the "Company"), announces it has closed the second tranche of a previously announced (January 19, 2010) non brokered private placement for additional gross proceeds of $500,000 consisting of 2,500,000 units ("Units") at $0.20 per Unit. Each Unit consists of one common share and one-half of a common share purchase warrant, with each whole warrant entitling the holder to purchase one common share at $0.30 for a term of one year.

This portion of the placement was purchased by TayCon Capital Corporation, a capital pool company under Policy 2.4 of the TSX Venture Exchange, which is completing the transaction as its qualifying transaction under such policy. The shares and warrants acquired will be distributed to the approximately 300 shareholders of TayCon Capital Corporation in proportion to their shareholdings and TayCon will be subsequently dissolved. Accordingly such securities will not be subject to a hold period under applicable securities laws and the requirements of the TSX Venture Exchange. 

An aggregate of 1,496,926 shares and 748,460 warrants will be placed in escrow with Equity Transfer & Trust Company as escrow agent as substituted securities for securities of TayCon Capital Corporation placed in escrow at the time of its initial public offering. Shares will be released from escrow over an 18 month period from April 1, 2010.

Proceeds of this issue, together with the $3.955 million raised in the first tranche closed on March 1, 2010, will be used by Xtierra to fund further metallurgical testing and feasibility work on Xtierra's Bilbao silver‐zinc‐copper project in Zacatecas, Mexico, and for expenses of the offering, general corporate purposes and working capital. 

Following closing of this transaction Xtierra will have 69,137,003 shares and 18,682,140 warrants outstanding.

About Xtierra Inc.

Xtierra Inc. is a Toronto based exploration and development company listed on the TSX Venture Exchange. Xtierra's shares trade under the symbol "XAG". Xtierra has 69,637,003 shares issued and outstanding. Xtierra is conducting a feasibility study on its 100% owned Bilbao silver‐zinc‐copper project in Zacatecas, Mexico.

Xtierra's objective is to become a mid‐tier producer of precious and base metals through the development of its Bilbao and Laguna projects, both located in the Central Mexican Mineral Belt in the State of Zacatecas, as well as through exploration, organic growth and M & A opportunities.

For further information visit www.xtierra.ca.

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 the accuracy of this release.

Contact Information

  • Xtierra Inc.
    Terence McKillen
    President & Chief Executive
    (416) 362-8243
    Xtierra Inc.
    Tim Gallagher
    (416) 925-0090
    Xtierra Inc.
    Alejandro Alanis
    Director Finance & Administration (Mexico)
    +52 (492) 925-0804