Xtierra Inc.
TSX VENTURE : XAG

Xtierra Inc.

April 15, 2010 17:30 ET

Xtierra Raises $700,000 as the Third and Final Tranche of Private Placement

TORONTO, ONTARIO--(Marketwire - April 15, 2010) - Xtierra Inc. (TSX VENTURE:XAG) ("Xtierra" or the "Company"), announces it has closed the third and final tranche of a previously announced (January 19, 2010) non brokered private placement for additional gross proceeds of $700,000 consisting of 3,500,000 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 GA Capital Corp., 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 have been distributed to the shareholders of GA Capital Corp. in proportion to their shareholdings and GA Capital will be subsequently dissolved. Accordingly such securities are not subject to a hold period under applicable securities laws and the requirements of the TSX Venture Exchange.

An aggregate of 2,058,824 shares and 1,029,412 warrants have been placed in escrow with Equity Transfer & Trust Company as escrow agent. Shares will be released from escrow over an 18 month period.

Proceeds of this issue, together with the $3.955 million raised in the first tranche closed on March 1, 2010, and $500,000 closed on April 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 has 75,637,003 shares and 22,182,140 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 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.

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
    +1 (416) 362-8243
    or
    Xtierra Inc.
    Tim Gallagher
    Director
    +1 (416) 925-0090
    or
    Xtierra Inc.
    Alejandro Alanis
    Director Finance & Administration (Mexico)
    +52 (492) 925-0804
    www.xtierra.ca