Explorator Resources Inc.
TSX VENTURE : EXO

Explorator Resources Inc.

February 21, 2011 10:55 ET

Explorator Resources Inc. Announces Private Placement

TORONTO, ONTARIO--(Marketwire - Feb. 21, 2011) - Explorator Resources Inc. ("Explorator" or the "Company") (TSX VENTURE:EXO) is pleased to announce a non-brokered private placement offering (the "Offering") for gross proceeds of $5,200,000, comprised of 10,000,000 units (the "Units") at a price of $0.52 per Unit. Each Unit will consist of one common share (a "Common Share") and three-quarters of one Common Share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to acquire a Common Share at an exercise price of $0.65 for a period of 24 months from the completion of the Offering, which is scheduled for February 25, 2011 (the "Closing"). Closing of the Offering is subject to the receipt of all applicable regulatory approvals, including the approval of the TSX Venture Exchange. The Common Shares and Warrants will be subject to a resale restriction for a period of four months plus one day from Closing. 

The proceeds of the Offering will be used to fund the costs of development of the El Espino Project in Chile in accordance with the agreed work program for 2011 and other corporate costs for 2011.

THIS NEWS RELEASE DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN THE UNITED STATES. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR ANY STATES SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED UNDER THE U.S. SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

OTHER INFORMATION:

A copy of the release, as well as other information related to the Company, is available on the Company's web site at www.explorator.ca and on SEDAR at www.sedar.com

EXPLORATOR RESOURCES INC.

David Prins, President & CEO Explorator Resources Inc.

ABOUT EXPLORATOR RESOURCES:

Explorator Resources is a Canadian-based mining exploration company with a 49% interest in the El Espino Copper-Gold Project in Chile (the "Project"). Sociedad Punta del Cobre S.A. acquired the remaining 51% of the Project in March 2009 in return for an investment of up to US$18.5 million, with US$7.0 million used to exercise the option to purchase agreement on the Project and the remaining funds directed at the continued exploration and evaluation activities.

The Project lies within the prolific copper-gold mineral area of the Cordillera de la Costa, 240 km. north of Santiago. An Updated Preliminary Economic Assessment (see press release dated Jan 24, 2011) defined the potential for an average annual payable production of 120 million pounds of copper and 61,000 ounces of gold over a 13.5 year mine life (life-of-mine payable production of 1.621 billion lbs copper and 828,000 oz. gold) at an average cash cost for the base case of $1.02/lb, net of gold credits (based on a gold price of $1,059/oz.)

FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information are identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and included, without limitation, statements regarding the company's plan of business operations, production levels and costs, potential contractual arrangements and the delivery of equipment, receipt of working capital, anticipated revenues, mineral reserve and mineral resource estimates, and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral reserve and resource estimates, equipment and supply risks, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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

  • Explorator Resources Inc.
    David Prins
    President & CEO
    +56 2 793-4925