AndeanGold Ltd.
TSX VENTURE : AAU
LMA : AAU

AndeanGold Ltd.

December 04, 2014 14:13 ET

AndeanGold Announces Private Placement of Up to $500,000 of Unsecured 12% Convertible Debentures

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 4, 2014) - AndeanGold Ltd. ("the Company" or "AndeanGold") (TSX VENTURE:AAU)(LMA:AAU) is pleased to announce a non-brokered private placement offering of unsecured 12% convertible debentures (the "Debentures") to raise gross proceeds of up to $500,000. The Debentures will have a three year term and will be convertible at any time at the option of the holder into common shares of the Company at a price of $0.05 per share.

The Debentures will carry an interest rate of 12% per annum which will be paid annually in arrears. The Debentures may be redeemed by the Company in whole or in part, without penalty but including accrued and unpaid interest, at any time after the second anniversary of the closing upon the Company giving not fewer than 30 days' written notice.

The Debentures, and the shares issued on conversion of the Debentures will be subject to a four-month hold period from the closing of the private placement. Completion of the private placement is subject to regulatory approval.

$125,000 of the proceeds will be used for the acquisition of a 40% interest in the Urumalqui Project, Peru and the balance of the proceeds will be used for general working capital purposes.

About AndeanGold Ltd:

AndeanGold Ltd. is engaged in the acquisition, exploration and potential development of metals properties, principally in Peru and Ecuador. The focus of the Company's exploration activities is presently in advancing its Urumalqui Project. In Ecuador, the Company's activities have been limited to maintaining its three properties. In September 2012, the Company received authorization from the MRNNR to renew exploration programs on its Ecuadorian Curiplaya Project. Please refer to AndeanGold's website at www.andeangoldltd.com for further information on the Company's projects and activities.

On Behalf of the Board of Directors of ANDEANGOLD LTD.

Alexander Peña Böttcher, Interim President and CEO

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.

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