Minera Alamos Inc.
TSX VENTURE : MAI

Minera Alamos Inc.

September 18, 2014 07:23 ET

Minera Alamos Inc.: Closes First Tranche of Debt Restructuring & Shares for Debt Transaction

TORONTO, ONTARIO--(Marketwired - Sept. 18, 2014) - Minera Alamos Inc. (the "Company" or "Minera Alamos") (TSX VENTURE:MAI) is pleased to announce that it has closed the first tranche of its previously reported debt restructuring transaction (Minera Alamos press release dated August 20, 2014). The Company received final approval from the TSX Venture Exchange ("TSXV") on September 17, 2014 to close on the issuance of $645,000 in convertible debentures, of a total of $770,000 in convertible debentures to be issued. The Company will close on the remaining $125,000 in convertible debentures in due course.

In connection with the issuance of the replacement debentures, the Company has issued 319,941 common shares in the capital of the Company (the "Shares") at a deemed price of $0.20 per Share as payment for $63,988 in interest owed on the above-extinguished debts. The shares for debt transaction, which has been carried out pursuant to Policy 4.3 - Shares for Debt of the TSXV Corporate Finance Manual, was initially announced in the August 20, 2014 release. The Company intends to issue a further 223,630 Shares to settle the remaining $44,726 in interest owed. Of the total Shares that will be issued in connection with the settlement of $63,988 in interest owing, 96,877 Shares will be issued to non-arm's length parties. The Shares will be subject to a hold period of four months and a day after the distribution date.

Concerning the financing proposal received on September 13, 2014, the Company has reminded those parties that the Company may redeem the convertible debentures at any time prior to their conversion and that the Company remains open to considering their proposal to replace some or all of that debt. In any event, the Company will require additional capital and will actively pursue this proposal as well as other opportunities. The Board of the Company will convene to review the proposal as soon as practically possible and will also discuss the establishment of an independent committee to evaluate the merits of the proposal.

In order to assist the Board in properly considering these matters, the Company is very pleased to announce that Mr. Steve Vaughan, a prominent mining and corporate finance lawyer in Toronto, has been retained as special counsel to advise the Board.

The Company also announced today the resignation of Mark Selby from the Board of Directors. The Company will announce a replacement as soon as possible.

About Minera Alamos

Minera Alamos is a junior exploration and development company; its projects include the Los Verdes copper-molybdenum porphyry project in Sonora, northern Mexico that is currently the subject of a pre-feasibility study.

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